AKAM Launches Native Connector for API Security: Stock to Gain?
Akamai Technologies, Inc. AKAM recently launched a state-of-the-art native connector that integrates Akamai API Security with Akamai Connected Cloud. This strategic enhancement is designed to streamline the discovery and protection of APIs, allowing customers to send their Akamai Connected Cloud traffic directly to API Security for thorough analysis and swift threat mitigation.
Reasons Behind the AKAM Product Launch
With the rapid adoption of cloud computing, security has become a major concern for enterprises. Hackers are using new and sophisticated techniques to take advantage of the security loopholes of the cloud. Large enterprises are expected to increase their security budgets to efficiently address security concerns and instill confidence in cloud computing. Akamai’s newly introduced connector aims to address these issues by providing organizations with an effective way to gain visibility into their API traffic while safeguarding against potential attacks, all without impacting performance or incurring extra costs.
Features of AKAM’s Cutting-Edge Native Connector
The product promises to offer a streamlined solution for companies looking to discover and secure their APIs. It is designed for faster return on investment through rapid, zero-touch deployment, and can also reduce the total cost of ownership by eliminating implementation and maintenance overhead. In addition, the solution allows for swift attack responses with direct blocking capabilities at the Akamai edge.
A key advantage of Akamai API Security is its vendor-neutral approach, which allows for integration with more than 40 traffic sources, including various cloud environments, API gateways and web application firewalls. This flexibility enables organizations to continue utilizing their preferred technologies while still benefiting from advanced security measures tailored to counter evolving cyber threats.
Will the Product Launch Drive AKAM’s Performance?
Akamai has expanded its cloud computing production through the introduction of Akamai Connected Cloud. This massively scaled edge network provides improved security and greater scalability to help businesses enhance their IT infrastructure. The market for API security is expected to witness substantial growth in the coming years owing to higher demand for data computing at the edge, triggered by the rapid deployment of 5G and IoT devices.
The launch of this innovative product is poised to plug the security loophole and generate incremental demand for Akamai’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward.
AKAM’s Stock Price Performance
Shares of Akamai have lost 6.6% over the past year against the industry’s growth of 24.1%.
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AKAM’s Zacks Rank and Key Picks
Akamai currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
Ubiquiti Inc. UI sports a Zacks Rank #1 (Strong Buy) at present. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.
Workday Inc. WDAY sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains.
Airgain, Inc. AIRG currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 35%.
Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
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