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Akamai (AKAM) Boosts Cybersecurity With Malware Protection

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Akamai Technologies, Inc. (AKAM - Free Report) has unveiled a cybersecurity tool to mitigate cyber risks and block malicious files uploaded to web apps and APIs (Application Programming Interfaces), which are a set of definitions and protocols for building and integrating application software. This edge-based solution dubbed Malware Protection will detect and block malware at the edge and prevent it from reaching the targeted destination, thereby thwarting damage from spreading.  

Malware Protection will form an integral part of Akamai’s web application and API protection (WAAP) solutions. It will offer a secure approach to inspecting files uploaded to applications and APIs on its Intelligent Edge network for any malicious content. This malware scanning engine is easily deployable and requires no additional installation and/or changes in application code by users as it is hosted completely on the Akamai Intelligent Edge. The solution is likely to offer added protection against malware embedded in files uploaded to web applications such as travel & hospitality, financial sites, customer portals and content management systems.  

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 efficiently address security concerns and instill confidence in cloud computing. We believe that the growing 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 devices proliferation.

Akamai is a leading provider of content delivery network services as its platform handles approximately two trillion web interactions on a daily basis. Its solutions help customers to address the challenges of bandwidth constraints and Internet traffic and, at the same time, reduce the need for additional hardware to manage traffic loads. Software distribution plays an important role in bolstering the business as the company benefits from rapid growth in Internet-based distribution of applications, operating system software and online game software. It has completed the acquisition of Linode, a leading Infrastructure-as-a-service platform provider, for almost $900 million. This will augment Akamai’s leading position in the market and leapfrog it as the world’s most distributed compute platform, from cloud to edge. We believe that strong growth in demand for online media and entertainment (High-Definition video) over the Internet and gaming will drive bandwidth requirements, thereby accelerating demand for the company’s solutions in the long haul.

The stock has lost 14.2% over the past year compared with the industry’s decline of 16.8%.

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

Baidu, Inc. (BIDU - Free Report) , carrying a Zacks Rank #2 (Buy), is a solid pick for investors in the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Headquartered in Beijing, China, Baidu offers Internet search services in the communist country. The stock has a long-term earnings growth expectation of 20.9% and delivered an earnings surprise of 52.9%, on average, in the trailing four quarters. Earnings estimates for the current year for Baidu have moved up 8.5% in the past week.

HealthStream, Inc. (HSTM - Free Report) , carrying a Zacks Rank #2, is another key pick. It delivered an earnings surprise of 372.9%, on average, in the trailing four quarters.

Headquartered in Nashville, TN, HealthStream provides workforce and provider solutions for healthcare organizations in the United States. The stock has a long-term earnings growth expectation of 10%. Earnings estimates for the current year for HealthStream have moved up 50% since June 2021.

Limelight Networks, Inc. , carrying a Zacks Rank #2, is also a key pick. It delivered an earnings surprise of 5%, on average, in the trailing four quarters.

Headquartered in Tempe, AZ, Limelight Networks provides content delivery network and related services in the Americas, Europe, the Middle East, Africa and the Asia Pacific. It offers powerful tools that optimize, protect and deliver clients’ valuable digital assets in an increasingly competitive marketplace. Limelight Networks has gained 2.2% in the past six months.

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