Akamai shares tumble as rising memory costs hit quarterly profit forecast
Akamai shares fell nearly nine percent today after the firm projected first-quarter profits below expectations. Rising memory costs are driving expenses higher.
Insights:
Akamai Technologies, Inc. announced on Thursday that its first-quarter adjusted profit forecast fell short of Wall Street estimates, leading to a nearly 9% drop in its share price after the bell. The company, which maintains operations in the US 
US and MX 
MX, attributed the lower guidance to rising expenses caused by a persistent memory supply squeeze.
US and MX MX, attributed the lower guidance to rising expenses caused by a persistent memory supply squeeze.According to the company, higher memory costs are directly increasing operational expenses. CEO Tom Leighton indicated that Akamai might pass some of these increased costs on to its customers, a move that could impact pricing decisions and near-term profitability across its security and compute segments. This announcement comes as data from LSEG showed the forecast missed the consensus of analysts.
