Akamai Technologies forecasts weak second-quarter results, shares slump
May 9 (Reuters) -Akamai Technologies AKAM.O forecast second-quarter revenue and profit below Wall Street estimates on Thursday, anticipating weak demand for its content delivery services amid concerns of slowing traffic growth.
Shares of the Cambridge, Massachusetts-based company, which also provides cloud computing and security solutions, fell about 9% in aftermarket trading.
Businesses have kept a tight leash on their budgets in the wake of high borrowing costs and sticky inflation, hitting demand for companies such as Akamai.
Akamai's customers include the U.S. Defense and Labor departments as well as firms like Adobe ADBE.O, eBay EBAY.O and Electronic Arts EA.O.
The company earlier this week agreed to buy application programming interface security company Noname Security for about $450 million.
The company expects second-quarter revenue in the range of $967 million and $986 million, compared with analysts' average estimate of $1 billion, according to LSEG data.
It forecast quarterly adjusted earnings per share between $1.51 and $1.56, compared with estimates of $1.63 per share.
Akamai reported revenue of $987 million in the first quarter ended March 31, falling short of analysts' average estimate of $989.3 million.
Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai
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