Akamai Technologies AKAM recently rolled out a new threat detection solution — Page Integrity Manager — to prevent data breaches amid the growing cyber security attacks as well as enhance user experience.
Moreover, the solution’s real-time threat detection capabilities allow it to more effective against well-concealed supply chain attacks like Magecart and stop such attacks when they occur. It will also enable customers to protect user data from malicious code from third-party sources.
Akamai’s new solution is likely to witness robust adoption due to growing threat of cyber security attacks across all industries. This, in turn, will drive the company’s top line in the upcoming quarters and boost investors’ confidence.
Notably, shares of the company have returned 15.8% in the year-to-date period compared with the industry’s rise of 8.7%.
Expanding Security Portfolio Holds Promise
Akamai’s strong focus on strengthening security offerings is likely to strengthen its position in the cyber security market, which per Mordor Intelligence data, is expected to witness a CAGR of 14.5% from 2020 to 2025. The company is striving to enhance its network and webpage security offerings through various acquisitions and product enhancements.
Akamai Technologies, Inc. Price and Consensus
Akamai Technologies, Inc. price-consensus-chart | Akamai Technologies, Inc. Quote
Notably, the company acquired select intellectual property (IP) from California-based Instart in February to accelerate the development of its page integrity solution.
Akamai also acquired Israel-based private company — ChameleonX –– in October 2019. The deal bolstered Akamai’s portfolio with capabilities which allow it to protect websites from attacks that hack user’s online payment details and other credentials without limiting customer experience.
These enhancements are expected to boost momentum for the company’s offerings as there is a significant demand for strong security solutions in the market. As hackers are becoming more sophisticated, enterprises are now under pressure to invest in solid cyber security infrastructure.
Moreover, increase in work-from-home trends thanks to the COVID-19 pandemic has exposed organizations to a higher degree of threat from cyber criminals. Markedly, Google’s Threat Analysis Group had reported in April that it has detected nearly 18 million pandemic-themed malware or phishing messages per day and some 240 million COVID-linked spam messages.
Akamai’s peers in the cyber security space aren’t far behind when it comes to enhancing their offerings to address growing demand for security solutions.
Notably, cyber security firm CrowdStrike CRWD recently strengthened its Linux protection capabilities with additional features, which include machine learning prevention, as well as custom and dynamic Indicators of Attack (IoAs). This will allow customers to prevent data breaches for applications running on Linux systems.
Moreover, California-based FireEye FEYE announced the launch of FireEye Cloudvisory, a control center for cloud security management across any multi-cloud security environment. The latest offering provides security teams with centralized visibility, continuous compliance and in-line enforcement of security policies.
In March, Massachusetts-based CyberArk CYBR expanded the capabilities of its CyberArk Alero offering to support remote work trends and aid customers in maintaining business continuity, while mitigating security risks associated with remote work.
Nevertheless, Akamai, currently carrying a Zacks Rank #3 (Hold), is witnessing robust traction for its security products. Notably, revenues in Cloud Security Solutions increased 26% year over year to $240.3 million in the first quarter. The momentum is expected to aid the company in countering competition in the market and position it for long-term sustainable growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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