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Akamai Technologies (AKAM) investors just received a more cautious signal from Wall Street. HSBC downgraded the stock from “Buy” to “Hold” and slashed its price target from $171 to $123, pointing to concerns about weaker-than-expected cloud infrastructure margins, slower earnings growth and elevated capital spending.
Akamai’s Q2 revenue rose to $1.1 billion, but non-GAAP operating profit fell short of HSBC’s estimate, while operating margin declined to 25% and EPS dropped 8% to $1.59.
