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Akamai Technologies ( AKAM ) is sticking with its revenue target of $5 billion by 2020-21. At its investor day on Monday, the company said that it has enough cash to pursue stock repurchases as well as acquisitions. “We could do both — M&A or share buybacks,” said Akamai CFO Jim Benson. He said that Akamai has about $1.5 billion in cash. Akamai did not change Q1 guidance calling for profit in a range of 61 cents to 64 cents per share and revenue of $562 million at its midpoint, up 7% from $526.5 million a year earlier. Akamai’s 2015 revenue rose 12% to $2.2 billion. “Although Akamai expects a lower overall growth rate for 2016, management is maintaining its long-term revenue goal of $5 billion by 2020, which implies a CAGR (compound annual growth rate) of 18%,” said Jim Breen, a William Blair analyst, in a report. Cambridge, Mass.-based Akamai is the biggest provider of content delivery network services to media and entertainment companies. Akamai’s CDN technology speeds up e-commerce transactions, business software downloads and video streaming to mobile devices. Akamai has expanded into higher-margin cloud infrastructure services and security, aiming to offset price cuts in the CDN business that averages 15% to 20% a year. At the investor day in Boston, Akamai said that it expects to grow sales overseas as well as to corporate customers. “The media business was de-emphasized relative to last year and is beginning to be overshadowed by the performance and security businesses,” said Michael Bowen, an analyst at Pacific Crest Securities, in a report. Akamai’s stock is up about 4% in 2016. It has an IBD Composite Rating of 59 out of a possible 99. Akamai competes with Limelight Networks ( LLNW ) and Level 3 Communications ( LVLT ) as well as Verizon Communications ( VZ ). Verizon carries a high Composite Rating of 98 and makes IBD’s Big Cap 20 weekly screen of large-cap growth stocks. Scalper1 News
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