AKAM to Boost Devsisters' Gaming Infrastructure: Will the Stock Gain?

Akamai Technologies, Inc. AKAM recently recently announced that Devsisters Inc. has opted to deploy its state-of-the-art cloud computing platform, Akamai Cloud, to bolster the latter’s global game services infrastructure. Through this deployment, the leading Korea-based game developer anticipates a smoother deployment and scaling process for new game releases, large-scale updates and in-game events, ensuring high-quality experiences for its growing global audience. 

How AKAM’s Cloud Platform Could Prove Beneficial?

As part of its strategy to continue improving user satisfaction and attracting new players, Devsisters is actively adding new content, enhancing game systems and hosting various events for its flagship games, such as CookieRun: Kingdom and CookieRun: OvenBreak. This contributed to the rapid growth of the CookieRun series' user base worldwide.
 
The adoption of Akamai Cloud is designed to offer significant benefits as Devsisters  embarks on its portfolio expansion journey. Unlike traditional public cloud services, the solution’s distributed edge network and extensive points of presence will likely ensure that the gaming experience remains stable, even during periods of high user traffic in specific regions. This ensures that players worldwide can enjoy smooth, uninterrupted gameplay, regardless of their location. 

Scalability is another major benefit of Akamai Cloud. During large-scale game launches, updates or special events, when user traffic surges, the solution automatically detects these increases in demand and adjusts resources in real time. This ensures minimal downtime and service delays, allowing users to enjoy uninterrupted gameplay with zero latency.  

Additionally, the solution’s cost optimization capabilities will likely help Devsisters manage operational expenses effectively. The system's unique design intelligently allocates server resources during peak traffic periods and scales them back during off-peak times, ensuring that resources are used efficiently without incurring unnecessary costs. With these enhancements, Devsisters is well-positioned to continue expanding its reach in the global gaming market while delivering top-tier experiences for players worldwide.

Increasing Client Base to Drive AKAM’s Share Performance

Akamai expanded its cloud computing production through the introduction of Akamai Connected Cloud and various cloud computing services. This massively scaled edge network offers enhanced security and increased scalability, enabling businesses to improve their IT infrastructure. The company’s security offerings are also poised to benefit from the increased demand for data computing at the edge, driven by the rapid deployment of 5G and IoT devices. The market for API security is expected to witness substantial growth in the coming years. Akamai is actively pursuing the opportunity. 

With a strong presence in more than 130 countries, the leading provider of content delivery network and cloud infrastructure services is expected to benefit from the increasing customer base. This will likely enable the company to generate higher revenues in the upcoming quarters. An improved financial performance is likely to propel the stock upward.

AKAM Stock Price Performance

Shares of Akamai have plunged 25.7% over the past year against the industry’s growth of 4.8%.

AKAM’s Zacks Rank and Key Picks

Akamai currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the broader industry have been discussed below.

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. The company is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.

InterDigital engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. 

CommScope Holding COMM currently sports a Zacks Rank #1. It has a long-term growth expectation of 19.37%. 

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. Since its inception in 1976, the company has created a niche market for itself, helping customers scale network capacity, delivering better network response time and performance, and simplifying technology migration. CommScope currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. 

Arista Networks, Inc. ANET, carrying a Zacks Rank of 2 (Buy) at present, supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.

Arista delivered a trailing four-quarter average earnings surprise of 12.87% and has a long-term growth expectation of 14.41%. Arista currently serves five verticals, namely – cloud titans (customers that deploy more than one million servers), cloud specialty providers, service providers, financial services and the rest of the enterprise.

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