What is Cloudflare's expected revenue growth in 2025?
Cloudflare expects its 2025 revenues to be between $2.09 billion and $2.094 billion, indicating a year-over-year growth of 25.4%.
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Finance / Tech
Cloudflare vs. Akamai: Which CDN Stock Has the Edge?
Cloudflare (NET) and Akamai Technologies (AKAM) are leading companies in the content delivery network (CDN) market. With the CDN market expected to grow at a CAGR of 18.04% from 2025 to 2034, the question is: Which stock offers more upside...
Key Insights
- Oppenheimer raised its price target on Cloudflare from $165 to $200, maintaining an Outperform rating, citing strong momentum in SASE security and AI-focused edge computing.
- Cloudflare's CDN is a high-performance platform that speeds up content delivery while ensuring secure web connectivity. The Workers platform has attracted over three million developers.
- Cloudflare anticipates 2025 revenues between $2.09 billion and $2.094 billion, a 25.4% year-over-year growth. Non-GAAP earnings per share are expected to grow by 5.3%.
- Akamai Technologies, an older player in the CDN space, offers an ecosystem combining cloud computing and security. However, its delivery segment revenues have been declining for the past 17 quarters.
- Cloudflare shares have climbed 66.9% year-to-date, while Akamai Technologies has plunged 18.3%.
In-Depth Analysis
## Cloudflare (NET) Analysis Cloudflare's CDN provides a globally distributed, high-performance platform that accelerates content delivery and maintains secure web connectivity. It uses tiered caching, Argo smart routing, and cache reserve to minimize traffic and optimize delivery efficiency. Cloudflare's security tools include DDoS, WAF, and bot management.
The firm is confident that Cloudflare (NYSE:NET&ref=yanuki.com) will exceed expectations for 2025, accelerate revenue growth beyond 30%, and reach a $5 billion ARR by the end of 2028.
## Akamai Technologies (AKAM) Analysis Akamai Technologies offers an ecosystem combining cloud computing and security in its CDN. It integrates security offerings like DDoS and WAF protection with edge computing solutions like EdgeWorkers and EdgeKV. However, Akamai's delivery segment revenues have been declining, raising concerns about the sustainability of its CDN business.
Akamai Technologies' profitability is also under pressure. The company expects its non-GAAP earnings to be in the range of $6.10-$6.40 per share. The Zacks Consensus Estimate for the same is pegged at $6.27 per share, indicating a year-over-year decline of 3.2%.
FAQ
How has Akamai Technologies' stock performed compared to Cloudflare?
In the year-to-date period, Cloudflare shares have climbed 66.9%, while Akamai Technologies has plunged 18.3%.
Takeaways
- Cloudflare is capturing market share and flourishing in the CDN space, while Akamai Technologies is slowly losing its grip. Cloudflare carries a Zacks Rank #3 (Hold), giving it an edge over Akamai Technologies, which has a Zacks Rank #4 (Sell).
Discussion
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Sources
Disclaimer
This article was compiled by Yanuki using publicly available data and trending information. The content may summarize or reference third-party sources that have not been independently verified. While we aim to provide timely and accurate insights, the information presented may be incomplete or outdated.
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