Shares of Akamai Technologies (AKAM) plunged 12.99% in pre-market trading on Friday, following the company's disappointing outlook for 2025 that highlighted ongoing challenges in its transition to focus more on security and cloud infrastructure services.

In its Q4 2024 earnings report, Akamai projected 2025 revenue of $4 billion to $4.2 billion, falling short of Wall Street's expectations of $4.26 billion. The company is grappling with several headwinds as it shifts away from its legacy content delivery business towards higher-growth areas:

- Akamai faces a significant $60 million revenue headwind from its largest customer pursuing a 'do-it-yourself' strategy, impacting overall growth.
- Growth in the company's cloud computing solutions segment is expected to slow to just 15% in 2025, compared to higher rates in previous years.
- Akamai's delivery revenue declined 18% year-over-year in Q4 2024, though signs of stabilization are emerging.
- Foreign exchange fluctuations are anticipated to negatively impact 2025 revenue and earnings.
- The company projects increased capital expenditures this year, partly due to infrastructure builds for a large cloud contract.

Analysts expressed concerns about the near-term challenges and uncertainty surrounding Akamai's multi-year transition. Some downgraded their ratings, citing issues like low growth in Akamai's core security business, declining margins, and higher costs associated with the strategic shift.