Technology company Akamai Technologies announced Thursday that its upcoming second-quarter financial results will likely miss analyst projections, citing difficulties from rising memory infrastructure expenses and reduced corporate investment.
The surge in memory infrastructure pricing has created widespread challenges throughout the tech sector, forcing companies like Akamai to allocate additional resources to obtain essential hardware components.
Market analysts have also expressed concerns about how emerging artificial intelligence security solutions from firms like Anthropic might affect established security technology providers.
For the second quarter, Akamai projected revenue ranging from $1.08 billion to $1.10 billion, falling short of the $1.10 billion target set by Wall Street analysts, based on LSEG data.
The company anticipates adjusted earnings between $1.45 and $1.65 per share for the quarter, while financial experts predicted $1.68 per share.
First-quarter revenue reached $1.07 billion, meeting Wall Street projections.
The company reported earnings of 71 cents per share, down from 82 cents per share during the same period last year.
