Akamai (AKAM) Reports Warns About Rising Cyber Threat Issues

·5 min read

Akamai Technologies, Inc. AKAM recently published its latest findings relating to increased cyber security threats in the Asia Pacific (APAC) region. As the region witnesses significant digital adoption and economic development, cyber attackers are improvising attacks on vital network infrastructure for financial gains. With 1.2 billion active mobile Internet service users, various malicious activities are also rising. Around 350 million activities related to Pykspa, an info-stealing malware, were registered in APAC. To counter this malice, frequent upgradation of existing network infrastructure with the latest security fixes is of utmost importance.

A successful cyber-attack on business and home infrastructure can lead to severe financial loss, loss of trust and reputation of the brand. Home networks are often easy targets due to the lack of defense mechanisms. As per the report, the highest number of issues related to the home network in the world was encountered in APAC, which is almost twice compared with North America. Akamai’s data suggests 40% of the phishing scams tried to exploit financial services users and 70% of the affected people also fell into the trap of this scam.

The research unearthed that QSnatch malware was a serious threat to the corporate ecosystem in APAC in 2022 and 60% of the affected devices were infected by it. QNAP (?) devices, whose Network Attached Storage (NAS) is constantly connected to the Internet, are vulnerable to QSnatch attacks. The report also suggests Command and Control (C2), a technique to communicate with compromised devices, is frequently used by attackers. According to the evidence, 10–16% of businesses globally experienced C2 traffic on their networks, indicating a potential security breach.

Cybersecurity is an area that holds a lot of promise for Akamai. 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 address security concerns and instill confidence in cloud computing. Demand for Akamai’s security solutions will translate into significant growth opportunities over the long term. The company’s security offerings are poised to gain from higher demand for data computing at the edge, triggered by the rapid deployment of 5G and IoT device proliferation.

Akamai is a leading provider of content delivery network (CDN) services, as its platform handles approximately two trillion web interactions daily. Its solutions help customers address the challenges of bandwidth constraints and Internet traffic while reducing the need for additional hardware to manage traffic loads. Software distribution is important in bolstering the business as the company benefits from rapid growth in Internet-based distribution of applications, operating system software and online game software.

Shares of the company have lost 36.8% in the past year compared with the industry’s decline of 28.8%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Akamai currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks, Inc. ANET, sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

It continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.

Juniper Networks, Inc. JNPR, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 1.55%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.

Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. The company caters to the networking needs of enterprises, public sector organizations and service providers across the globe

Ubiquiti, Inc. UI, sporting a Zacks rank #1, delivered an earnings surprise of 6.90% in the last reported quarter. Earnings estimates for UI for the current year stand at $7.31 per share. Ubiquiti and its subsidiaries offer a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing, while enterprise product platforms provide wireless local area network (WLAN) infrastructure, video surveillance products and machine-to-machine communication components.

The company’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. Its operating model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals (referred to as the Ubiquiti Community).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report

Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

Ubiquiti Inc. (UI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research