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I think she will continue up tomorrow and pull back next week as well.
It's not uncommon, right, to have a few days up after a good report like that?
(HAHA! 2 feet. ;)
Sounds wise to me.
With such a dynamic bounce bound to be a pull back of some nature at some point? With tomorrow being Friday it might wait until next week to expose itself?
(You’re earlier post/question about “where you were sitting”, I was afraid that you were going to say “in my yard on top of 6 feet of snow”. :o)
I decided to go with what I know.
I know I have a gain. Tomorrow I don't know if it will be bigger or less.
Farkle rules got me pretty far last year. So tis Locked in.
Let no gain go unrealized.
And that's a decision I can live with if it goes on up tomorrow. :)
Onward thru the fog. ;) Now I'm off to babysit my others.
J
Analysts Weigh in On Akamai Technologies (AKAM), Make a Number of Changes to Estimates
11:41 am ET 02/09/2012 - Street Insider
Shares of Akamai Technologies, Inc. (NASDAQ: AKAM) are trading up 10.89 percent today after reporting its fourth quarter results. For the fourth quarter, earnings came to $0.45 per share, $0.05 better than the analyst estimate of $0.40. Revenue for the quarter came in at $324 million versus the consensus estimate of $311.26 million.
The company also announced a planned transition in leadership within the Company's finance organization. James Benson, Akamai's Senior Vice President of Finance will succeed J. Donald Sherman as Executive Vice President and Chief Financial Officer, effective March 1st.
During the company s quarterly conference call, management noted the company is expecting first quarter sales of $305-$313 million and adj-EPS of 36-39 cents. The Street is currently expecting sales of $304.82 million and earnings of $0.39 for the quarter.
Analyst comments
Management remained confident in their ability to hit the 46% margin target and stressed that Q1 would primarily be impacted by new product investments and seasonal declines vs. Q4, comments an analyst at Wells Fargo. We think AKAM margin targets are likely conservative and note that gross profit margins improved sequentially for AKAM in Q4 2011 for the first time since Q1 2010.
Following the release, Wells Fargo reaffirmed its Outperform rating on the company and raised its price valuation range from $39-$41 to $45-$49.
An analyst at Collins Stewart reports, Despite the CDN headwinds created by some of the larger telco competitors in the market , Akamai managed to buck the trend of slowing annual revenue growth . We note that the stregnth was driven by better than expected growth rates from both the Cloud Infrastructure segment as well as the contend delivery business.
Although Collins Stewart believes the acquisition of Cotendo Inc. represent an unambiguous positive for the company, the firm is maintaining its Neutral rating on the stock. Collins has also raised its price target on the company from $31 to $34.
While reiterating it s Buy rating and raising its price target from $36 to $43 on the company, an analyst at Dougherty & Co. states, We believe the Q4 results are consistent with our thesis that AKAM is a uniquely positioned Internet Infrastructure provider, benefiting from Internet growth, generating a significant amount of cash, with several large growth vectors available to it.
DA Davidson notes the first quarter will be the hardest quarter for the company to boost growth throughout the year. The company was worried about the guidance ahead of the release, but has become less skeptic following the solid outlook given by management.
DA Davidson remains Neutral on the stock, while raising its price target from $36 to $40.
Credit Agricole has upgraded its rating on the company s stock from Outperform to Buy. The firm also raising its price target on the company from $37 to $44.
Akamai Technologies Outruns Estimates Again
http://www.fool.com/investing/general/2012/02/09/akamai-technologies-outruns-estimates-again.aspx
Akamai Technologies (Nasdaq: AKAM ) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Akamai Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins shrank, net margins improved.
Revenue details
Akamai Technologies logged revenue of $323.7 million. The 22 analysts polled by S&P Capital IQ anticipated a top line of $311.3 million. GAAP sales were 14% higher than the prior-year quarter's $284.7 million.
EPS details
Non-GAAP EPS came in at $0.45. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share on the same basis. GAAP EPS of $0.33 for Q4 were 22% higher than the prior-year quarter's $0.27 per share.
Margin details
For the quarter, gross margin was 68.3%, 660 basis points worse than the prior-year quarter. Operating margin was 26.0%, 460 basis points worse than the prior-year quarter. Net margin was 18.6%, 20 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $304.7 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $1.28 billion. The average EPS estimate is $1.67.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,139 members rating the stock outperform and 137 members rating it underperform. Among 846 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 825 give Akamai Technologies a green thumbs-up, and 21 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akamai Technologies is hold, with an average price target of $30.45.
Akamai Surpasses Estimates
By Zacks Equity Research | Zacks – 1 hour 19 minutes ago.. .
Akamai Technologies, Inc. (NasdaqGS:AKAM - News) reported earnings of 35 cents per share in the fourth quarter of 2011, which surpassed the Zacks Consensus Estimate of 31 cents. Earnings increased 16.7% from 30 cents per share reported in the year-ago quarter.
Reported earnings include stock-based compensation expense and amortization of capitalized stock-based compensation, but exclude amortization of other intangible charges and restructuring charges.
The year-over-year growth was primarily driven by strong revenues; partially offset by higher expenses, which dragged margins in the reported quarter.
Revenue Performance
Total revenue in the quarter was $323.7 million, up 13.7% year over year and surpassed the Zacks Consensus Estimate of $311.0 million. Total revenue also managed to achieve the higher end of management’s guided range of $303.0 million to $315.0 million. The better-than-expected result was primarily driven by continued solid growth across its business segments.
Revenue from Akamai’s fastest-growing Enterprise vertical grew 23.0% year over year to $41.2 million, as more customers adopted cloud services for their businesses.
Revenue from Commerce increased 20.0% year over year to $76.9 million, driven by an increase in the online shopping during the holiday season. Public sector climbed 3.4% year over year to $15.2 million and Media & Entertainment jumped 11.5% to $137.4 million. Revenue from the High Tech vertical grew 9.0% year over year to $53.0 million in the reported quarter.
Region wise, revenue from North America climbed 13.0% year over year. International revenues jumped 15.0% year over year. Revenue for the quarter witnessed robust growth across Europe and other economies, except for Japan.
Operational Metrics
Gross profit increased 11.5% year over year to $221.2 million in the reported quarter. However, gross margin contracted 140 basis points (bps) year over year to 68.3% in the same period due to unfavorable business mix.
Total operating expenses increased 12.9% year over year to $137.5 million. The year-over-year growth in expenses was primarily attributable to higher general & administrative expense (up 22.0% year over year) and research & development expense (up 10.1% year over year). However, sales & marketing expense remained flat when compared with the prior year quarter.
Operating income on a non-GAAP basis was $83.5 million versus $76.6 million in the year-ago quarter. Operating margin in the quarter was 25.8% compared with 26.9% in the year-ago quarter.
Balance Sheet
Akamai exited the quarter with cash and cash equivalents (including marketable securities and restricted marketable securities) of $849.2 million compared with $687.6 million in the prior quarter.
Akamai generated cash flow from operations of $135.9 million in the reported quarter versus $116.3 million in the previous quarter. During the fourth quarter, Akamai repurchased approximately 3.0 million shares for $76.0 million, at an average price of $26.38 per share.
Guidance
Akamai expects revenue in the range of $305.0 million to $313.0 million (11.0% to 13.0% year-over-year growth) for the first quarter of 2012. Management believes that seasonal pressure can possibly drag the revenues down in the upcoming quarter.
Akamai expects gross margins to remain flat on a sequential basis. Akamai expects adjusted EBITDA margin to be approximately 43.0%.
Earnings is expected to be between 36 cents and 39 cents per share, including tax charge of $25 million to $30 million, based on a GAAP tax rate of about 38% to 39%. Currently, the Zacks Consensus Estimate (including stock-based compensation) for the fourth quarter is pegged at 30 cents per share.
Akamai forecasts capital expenditure (excluding equity-based compensation) of approximately $50 million for the forthcoming quarter.
Our Take
We believe that increased usage of cloud computing technology ensures higher adoption of value-added solutions, which will drive strong top-line growth going forward. Moreover, strong demand for security products, aggressive share repurchase and strategic partnerships are positives for the stock over the long term. Moreover, the acquisition of Cotendo and Blaze is expected to strengthen Akamai’s dominant position in the dynamic site accelerator (:DSA) market.
However, weak traffic growth remains a concern, as Akamai continues to face intense pricing pressure from competitors like Level 3 Communications Inc. (NYSE:LVLT - News), Limelight Networks, Inc. (NasdaqGS:LLNW - News) and carriers such as AT&T Inc. (NYSE:T - News) and Verizon Communications (NYSE:VZ - News), who are developing their own content delivery network. We believe this will hurt revenue growth going forward.
We maintain our Neutral recommendation on a long-term basis (6-12 months). Currently, Akamai has a Zacks #3 Rank, which implies a Hold rating on a short-term basis.
You know where I am sitting right?
Sell that gain and the stock goes up. Hold that gain and the stock goes down.
The ol' damned if you do, damned if you don't scenario. ;)
Darn it!
I was hoping to find lots of upgrades today. Give me some encouragement...but that GAP. OH that gap!
You know I love that site... but what is this bearish candle crap they list? The other day they had a gravestone Doji on another stock of mine? Sounds wicked, right? It then went up?
I have a hard enough time with simple things on a chart. Last thing I need is candles with different names! LOL I'll never figure that out!
What do you think about the bearish candle list?
http://www.stockta.com/cgi-bin/analysis.pl?symb=AKAM&num1=1&cobrand=&mode=stock
Recent CandleStick Analysis
Very Bearish
Date Candle
Feb-09-2012 Hammer
Feb-08-2012 Inverted Hammer
Your chart (#msg-71886768) suggesting next up gap $41.25 from late last April?
StockTA not showing resistance at the moment ... http://www.stockta.com/cgi-bin/analysis.pl?symb=AKAM&num1=1&cobrand=&mode=stock
Support/Resistance
Type Value Conf.
supp 37.65 1
supp 35.66 3
supp 33.32 10
supp 31.86 2
supp 31.27 4
supp 30.32 3
supp 29.43 3
supp 26.34 6
supp 24.90 2
supp 24.23 2
supp 22.80 6
supp 22.10 2
supp 20.72 2
supp 19.71 4
supp 18.32 2
Credit Agricole Upgrades Akamai Technologies (AKAM) to Buy
February 9, 2012 9:01 AM EST
Credit Agricole upgraded Akamai Technologies (NASDAQ: AKAM) from Outperform to Buy, price target raised from $37 to $44.
Shares of Akamai Technologies closed at $34.44 yesterday, with a 52 week range of $18.25-$49.38.
I didn't own AKAM prior to either.
I’ll forever acknowledge and respect your time for keeping boards such as AKAM alive. Thank You, J! You continue to be on-watch as one exposing such potiential Winners :o)
Or losers... ;o(
(AKAM Gaps to fill? Thinking so but how many...I don't know?)
Hummmm?
Thanks again!
Scov.
Not sure if I'm ready to jump in yet or not might wait till the bell 2 morro - gap and trap ? Not sure yet I know fins came out good but still wary ..
Akamai Q4 Crushes Estimates; Stock Soars In Late Trading
Shares of the content delivery network operator Akamai Technologies are trading sharply higher after hours on Wednesday on better-than-expected results for the fourth quarter.
The company posted revenue for the quarter of $324 million, up 15% sequentially and 14% year-over-year, and ahead of the Street at $311.3 million. Normalized profits of 45 cents a share topped the Street at 40 cents.
CEO Paul Sagan said in a brief interview this afternoon that the company saw “strength across the board,” beating not only the Street’s forecasts but also the company’s own guidance. Sagan said that business from e-commerce customers was “extremely strong” in the quarter. He also said that the company is benefiting from strong cyclical trends in Web security, site performance, mobile site performance and delivery of high quality video.
Sagan noted that the company in 2012 will introduce refreshed or major new products in every category in which it competes.
Sagan added that Akamai is “very optimistic” about 2012 coming off a strong 2011 second half.
AKAM in late trading has spiked $4.11, or 11.9%, to $38.55.
UPDATE 1-Akamai Q4 beats Street view; shares jump
Wed Feb 8, 2012 4:24pm EST
Feb 8 (Reuters) - Internet delivery company Akamai Technologies Inc posted a fourth-quarter profit above analysts' expectations, helped by growing demand for online content, sending its shares up 7 percent in trading after the bell.
Akamai earned $60 million, or 33 cents a share, compared with $52.5 million, or 27 cents a share.
Excluding items, the company earned 45 cents a share.
Revenue rose 15 percent to $324 million.
Analysts were expecting earnings of 40 cents a share, excluding items, on revenue of $311.3 million, according to Thomson Reuters I/B/E/S.
Shares of the Cambridge, Massachusetts-based company, which have gained more than 80 percent in value since its year-low in October, were at $36.92 in trading after the bell. They closed at $34.44 on Wednesday on the Nasdaq.
AKAM: Q4 Adj EPS 45c vs 40c Beats 40c Est
Wednesday, February 08, 2012 16:02ET
QUARTER RESULTS
Akamai Technologies Incorporated (AKAM) reported Q4 results ended December 2011. Q4 Revenues were $324.00M; +13.81% vs yr-ago; BEATING revenue consensus by +4.09%. Q4 EPS was 33c. Adjusted Q4 EPS was 45c; +12.50% vs yr-ago; BEATING earnings consensus by +12.50%.
Q4 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $324.00M $284.69M +13.81% $311.26M +4.09%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 33c N/A N/A N/A N/A
Adj EPS: 45c 40c +12.50% 40c +12.50%
---------- ------------ ------------ ---------- ------------ ----------
FY RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $1,159.00M $1,023.59M +13.23% $1,147.65M +0.99%
---------- ------------ ------------ ---------- ------------ ----------
EPS: $1.07 N/A N/A N/A N/A
Adj EPS: $1.52 $1.43 +6.29% $1.47 +3.40%
---------- ------------ ------------ ---------- ------------ ----------
Akamai Reports Fourth Quarter 2011 and Full-Year 2011 Financial Results
Wednesday, February 08, 2012 16:00ET
http://www.knobias.com/story.htm?eid=3.1.89c6eb5b9e41c2fe99e6bc94650807c95bbd0203239b549691d770781eff958f
CAMBRIDGE, Mass., Feb. 8, 2012 /PRNewswire/ --
-- Fourth quarter revenue grew to $324 million, up 15 percent from the
prior quarter and 14 percent year-over-year, and annual revenue
increased 13 percent year-over-year to $1,159 million
-- Fourth quarter GAAP net income increased 42 percent quarter-over-quarter
and 14 percent year-over-year to $60 million, or $0.33 per diluted
share, and full-year GAAP net income increased 17 percent year-over-year
to $201 million, or $1.07 per diluted share
-- Fourth quarter normalized net income* increased 31 percent
quarter-over-quarter and 9 percent year-over-year to $83 million, or
$0.45 per diluted share, and full-year normalized net income* increased
5 percent year-over-year to $285 million, or $1.52 per diluted share
-- Full-year cash from operations of $453 million: year-end cash, cash
equivalents and marketable securities of over $1.2 billion
Akamai Technologies, Inc. (NASDAQ: AKAM), the leading cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere, today reported financial results for the fourth quarter and full-year ended December 31, 2011. Revenue for the fourth quarter 2011 was $324 million, a 15 percent increase over third quarter revenue of $282 million, and a 14 percent increase over fourth quarter 2010 revenue of $285 million. Total revenue for 2011 was $1,159 million, a 13 percent increase over 2010 revenue of $1,024 million.
"Akamai posted record results in the fourth quarter, with accelerated growth across our business." said Paul Sagan, President and CEO of Akamai. "We believe our Content Delivery and Cloud Infrastructure solutions are stronger than ever, and we look forward to further enhancing our Cloud Infrastructure portfolio with the completed acquisition of Blaze and the planned acquisition of Cotendo, which may close as early as the first quarter."
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the fourth quarter of 2011 was $60 million, or $0.33 per diluted share. Full-year GAAP net income for 2011 was $201 million, or $1.07 per diluted share.
The Company generated normalized net income* of $83 million, or $0.45 per diluted share, in the fourth quarter of 2011, a 31 percent increase over the prior quarter's normalized net income of $63 million, or $0.34 per diluted share, and a 9 percent increase over fourth quarter 2010 normalized net income of $77 million, or $0.40 per diluted share. Full-year normalized net income grew 5 percent year-over-year to $285 million, or $1.52 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)
Adjusted EBITDA* for the fourth quarter of 2011 was $148 million, up from $122 million in the prior quarter, and $129 million in the fourth quarter of 2010. Adjusted EBITDA margin for the fourth quarter was 46 percent, up 3 points from the prior quarter and up 1 point from the same period last year. For the full year, adjusted EBITDA was $525 million, up from $474 million in 2010. Full-year adjusted EBITDA margin in 2011 was at 45 percent, down one percent from 2010. (*See Use of Non-GAAP Financial Measures below for definitions.)
Full-year cash from operations was $453 million, or 39 percent of revenue, consistent with the prior year. At year end, the Company had over $1.2 billion of cash, cash equivalents and marketable securities.
Sales through resellers and sales outside the United States accounted for 19 percent and 28 percent, respectively, of revenue for the fourth quarter 2011.
Share Repurchase Program
During the fourth quarter of 2011, under a share repurchase program that was approved by the Board of Directors in April 2011 and expanded in August 2011, the Company repurchased approximately 3 million shares of its common stock for $76 million, an average price of $26.38 per share. As of December 31, 2011, the Company had repurchased 12 million shares of its common stock for $325 million, at an average price of $26.45 per share, during fiscal 2011.
The Company had approximately 178 million shares of common stock outstanding as of December 31, 2011.
Okay.... that was a cool end to the day. ;)
I haven't owned AKAM in so long and here I find myself recently buying it back right before earnings? UGH! Typically a no no for me.
Where was I when it was at 18,eh?
Sometimes I drive myself nuts! I stalk 'em and then miss them anyway.
Thanks for the info Scov! They report tonight,btw.
Cross your fingers (and remind me to add should she tank!)
Best wishes! As always!
J
AKAM announced today that it acquired Blaze Software Inc.
http://www.knobias.com/story.htm?eid=3.1.7d4b7f92c9ee811aa47d4d52361e52545c2ffb2b1b2b6c03172cbaae55ed04cd
Akamai Acquires Blaze
Wednesday, February 08, 2012 08:45ET
CAMBRIDGE, Mass., Feb. 8, 2012 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) announced today that it has acquired Blaze Software Inc., a provider of frontend optimization (FEO) technology, in a cash transaction. The acquisition is expected to complement Akamai's market-leading site acceleration solutions with technology designed to optimize the speed at which a web page is rendered, regardless of end user device.
With the rapid adoption of rich Internet applications and the increase in mobile browsing, new performance bottlenecks are emerging. Websites are becoming richer and more complex, with more compute requirements built into a single page, impacting performance in the browser or client device. As a result, content providers are faced with a growing set of challenges in maintaining a high-performing site and assuring a superior end-user experience.
Blaze provides technology designed to automatically optimize the code on a web page during the delivery process to ensure faster transmission of content and a faster rendering of the page, whether served to a PC, tablet or smartphone. As a cloud-based service that requires no software or code changes by the customer, Blaze's offering is designed to work with any web site. Akamai plans to integrate the technology into its global cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere.
"As businesses provide rich, interactive web experiences online and across devices, it is vital that end users receive a consistently high-performing site," said Rick McConnell, executive vice president of Products and Development, Akamai. "We believe Blaze has developed a powerful solution for frontend optimization, and that its cloud-based services approach is synergistic with Akamai's offerings. The team at Blaze will be an important addition to our focus on site acceleration. Our goal continues to be providing customers with the most comprehensive set of technologies to optimize all aspects of their site performance."
"Core to our focus at Blaze is constant research and product development that enables us to improve the speed of our customers' sites by automatically applying the latest web performance optimization best practices," said Michael Weider, CEO of Blaze. "Our technology is aimed at reducing the number of requests required to load a page, reducing the size of each request, and improving the browser rendering experience for our customers. Combining our technology with the global Akamai platform is a big win for customers who are increasingly looking to take performance optimization to the next level."
About Blaze
Based in Ottawa, Canada, Blaze was founded in 2010 with a mission to help clients deliver better performing Web businesses by making their sites faster. User experience, conversions, search rankings and operational costs are all influenced by the speed of your site. Blaze provides a cloud-based service that automates Frontend Optimization (FEO). To learn more, please visit www.blaze.io
About Akamai
Akamai(®) is the leading cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere. At the core of the Company's solutions is the Akamai Intelligent Platform(TM) providing extensive reach, coupled with unmatched reliability, security, visibility and expertise. Akamai removes the complexities of connecting the increasingly mobile world, supporting 24/7 consumer demand, and enabling enterprises to securely leverage the cloud. To learn more about how Akamai is accelerating the pace of innovation in a hyperconnected world, please visit www.akamai.com or blogs.akamai.com, and follow @Akamai on Twitter.
The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements about the expectations with respect to the integration of the Blaze technology and resulting benefits and the expected future business and financial performance of Akamai resulting from and following the acquisition. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, inability to successfully integrate the technology of Blaze or to develop products based on the technology and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.
Contacts:
Jeff Young --or-- Natalie Temple
Media Relations Investor Relations
617-444-3913 617-444-3635
jyoung@akamai.com ntemple@akamai.com
SOURCE Akamai Technologies, Inc.
AKAM 4Q FY Earnings 2-08-12 AMC
Akamai to Hold Fourth Quarter and Full-Year 2011 Investor Conference Call on Wednesday, February 8th at 4:30 PM ET
Press Release: Akamai Technologies, Inc. – Tue, Jan 10, 2012 6:30 AM EST.. .
CAMBRIDGE, Mass. , Jan. 10, 2012 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM - News), the leading cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere, announced today that the company will hold a conference call for investors on Wednesday, February 8, 2012 at 4:30 p.m. ET . The call will include the company's fourth quarter 2011 and year-end financial results, and may include forward-looking financial guidance from management. The call will also be broadcast live via the Internet at www.akamai.com.
(Logo: http://photos.prnewswire.com/prnh/20100225/AKAMAILOGO )
The live dial-in information for the conference call is:
U.S. only: (866) 831-6247
International: (617) 213-8856
Passcode: 92823340
In addition, a replay of the call will be available for one week following the conference by calling 1-888-286-8010 (or 1-617-801-6888 for international calls) and using passcode No. 69462788. The archived webcast of this event may be accessed through the Akamai Website.
Akamai Advances Its Intelligent Platform to Address New Business and Consumer Needs for the Online Entertainment Industry
Monday , January 09, 2012 06:30ET
LAS VEGAS, Jan. 9, 2012 /PRNewswire/ -- CES SHOW -- Akamai Technologies, Inc. (NASDAQ: AKAM), the leading cloud platform for helping businesses provide secure, high-performing user experiences on any device, anywhere, today introduced technology advancements for the rapidly evolving online entertainment industry in the areas of security and delivery, as well broader support for emerging business models.
Today's hyperconnected world is radically changing the business of media and entertainment. Product innovation and rapid consumer adoption have created an environment where delivering a secure, high-performing consumer experience on any device is critical. This new environment brings enormous benefits and opportunities, but also real challenges.
Building on its Intelligent Platform, Akamai has introduced new solutions to enhance its next-generation broadcast solution - the Akamai HD Network - offering advanced monetization capabilities, business model flexibility and simplified workflow to reach a growing device landscape.
"Cloud computing, ubiquitous connectivity, and the increasing consumption of IP video are driving content providers to move more content to the cloud and users to expect access to content on multiple devices," said Bill Wheaton, Senior Vice President of Digital Media at Akamai. "Akamai is committed to reducing the complexities of the hyperconnected world by providing a platform that delivers the best user experience, securely, for any device type. By helping our customers solve the business challenges across security, multi-device delivery and analytics, we're continuing to enable them to focus on their core business strategies."
The acceptance of cloud computing, as well as advances in connected device and mobile technology, has led to increased viewing of IP video, but also opened the door for piracy and unauthorized consumption of content. The number of connected devices has exploded, and industry predictions indicate that by 2015, 90 percent of video will be online[1] and by 2015, the ratio of devices per Internet user will be five to one[2]. As a result, the entertainment industry faces increasing complexities around entitlement, access, monetization, quality and security.
To help companies navigate the changing landscape and meet consumer expectations, Akamai is announcing:
Standardized Delivery on the Akamai HD Network
The plethora of device types used to consume HD media has added complexity to content distribution and the ability to ensure high-performing viewer experiences on the go. Akamai has addressed this by standardizing on HTTP as the primary delivery protocol, which includes HTTP Live Streaming (HLS) and Smooth HD Streaming for delivery across the Akamai HD Network. Akamai also recently made available Adobe(®) HTTP Dynamic Streaming (HDS) across its platform, and customers can leverage these new dynamic streaming capabilities without making changes to their existing Flash workflow.
"One of the key business benefits that Adobe's HTTP Dynamic Streaming capability offers is meeting the needs of broadcasters that are streaming an increasing volume of premium video content across a diverse set of devices," said Pritham Shetty, vice president of Video Solutions at Adobe. "The long-term strategic relationship between Akamai and Adobe has consistently produced new and cost-effective ways for content owners to scale to the next level with their online video offerings and initiatives. The general availability of HTTP Dynamic Streaming within the Akamai HD Network is yet another milestone that will benefit our mutual customers and the end users who expect the best quality video experience."
Digital Asset Security
As the entertainment industry expands its digital footprint, security threats have become more prominent, frequent and dangerous. Securing content in the cloud across multiple connected devices and geographies is critical and companies must achieve the fine balance between content accessibility and protection. Not all content is created equal and requires varying levels of security.
To meet this challenge, Akamai developed Akamai SecureHD, a highly-scalable, cloud-based security solution that includes four protection capabilities: token authorization, player verification, media encryption and content targeting. Designed to protect consumers and businesses from misuse of digital assets, Akamai SecureHD is optimized for live and on-demand streamed content and offers a simplified process for content owners to protect assets across multiple delivery formats and devices. Akamai SecureHD also optimizes security features based on device capabilities and associates security policies to ensure optimum playback for any connected device.
Support for Emerging Business Models
Positioned at the heart of the digital media ecosystem, Akamai has the experience, scale and relationships to help bring new business models like TV Everywhere and UltraViolet((TM)) to market. Meeting consumers' expectations for high quality content on multiple devices can be daunting. Coupled with security requirements, multiple content owners, retailers and distributors, as well as the introduction of digital lockers, and the task becomes challenging.
UltraViolet is a groundbreaking ecosystem for delivering a new and compelling way to collect and enjoy home video entertainment. As an UltraViolet licensee, Akamai acts as an integration point between the players in the Digital Entertainment Content Ecosystem (DECE), the consortium of leading movie studios, technology providers, consumer device makers, entertainment retailers and video service providers powering UltraViolet. To assist content providers and entertainment retailers in meeting consumers' demands for accessing content on multiple devices, the Akamai for UltraViolet solution is now available to support library-style entitlement models through a simplified workflow, an intelligent cloud-based delivery platform, and broad security measures. The Akamai HD Network provides high quality video streaming of UltraViolet content using the latest adaptive bitrate technologies, and Akamai SecureHD manages content streamed to PCs, tablets and other Internet connected devices. Akamai's solution also streamlines access code redemption, account management and stream management with the UltraViolet Coordinator.
"B2B service providers like Akamai are utilizing UltraViolet's open-specs design ability to accelerate retailers' and other service providers' deployment, with premium-quality enablement and delivery on a rapid-deployment and cost-efficient basis," said Mark Teitell, general manager of DECE. "Akamai is helping the deployment of UltraViolet move to the next phase as we continue to seek to provide consumers with access to their favorite movies and TV shows in ways never thought possible. Congratulations to Akamai for bringing this suite of solutions to market."
Availability & Information
All of the above solutions are available today. More details on Akamai's HD Network and HTTP Streaming solutions can be found here: http://www.akamai.com/html/solutions/hdnetwork.html For more information on Akamai SecureHD, please download the SecureHD whitepaper. Akamai for UltraViolet is currently powering studio-approved UltraViolet solutions. Visit www.akamai.com/ultraviolet for more details on this solution.
About Akamai
Akamai® is the leading cloud-based platform for helping enterprises provide secure, high-performing user experiences to any device, anywhere. At the core of the Company's solutions is the Akamai Intelligent Platform(TM) providing extensive reach, coupled with unmatched reliability, security, visibility and expertise. With solutions for connecting an increasingly mobile world, supporting 24/7 consumer demand for commerce and entertainment, and enabling enterprises to securely leverage the cloud, Akamai empowers its customers to transform and reinvent their online businesses. To learn more about how Akamai is accelerating the pace of innovation in a hyperconnected world, please visit www.akamai.com and follow @Akamai on Twitter.
Barron’s is bullish on AKAM: #msg-70418195.
Akamai Rises on Purchase of Startup Cotendo
By Alex Sherman - Dec 22, 2011 8:39 AM MT .
Akamai Technologies Inc. (AKAM), operator of a server network that lets businesses speed data delivery, rose the most in almost two months after agreeing to buy startup competitor Cotendo Inc. for about $268 million in cash.
Akamai jumped 18 percent to $31.42 at 10:23 a.m. in New York trading. The stock rose as much as 19 percent, for its biggest intraday gain since Oct. 27.
The acquisition will let Cambridge, Massachusetts-based Akamai expand its acceleration technologies for the Web-based cloud computing system used by customers such as phone companies and social networks. The deal also helps Akamai “maintain its leadership position and high margins” by eliminating a competitor, according to a research note from Gray Powell, an analyst at Wells Fargo & Co. in New York.
Akamai is paying about nine times Cotendo’s anticipated 2011 revenue of $30 million, according to Powell. The ratio makes the deal “expensive but worth it,” he said. The purchase price is less than the $300 million some investors had expected three weeks ago, said Powell, who rates the stock “outperform.”
Investors in Cotendo, founded in 2008, include venture- capital firms Sequoia Capital and Benchmark Capital, as well as Juniper Networks Inc. (JNPR), according to its website. Sunnyvale, California-based Cotendo has about 100 employees, half of them in Israel, where the company has a technology center, according to a statement today.
The purchase is Akamai’s second largest after the $2.19 billion acquisition of InterVU Inc. in 2000, according to data compiled by Bloomberg. Akamai has a market value of more than $5 billion and about 2,300 employees. It slumped 43 percent this year before today.
Chart of the Day: Akamai Technologies
http://www.minyanville.com/businessmarkets/articles/akamai-technology-akamai-stock-akamai-stock/11/8/2011/id/37820?camp=syndication&medium=portals&from=yahoo
This Internet stock has been very "gappy" but the trend does appear to have changed for the better.
Shares of cloud pioneer Akamai (AKAM) rose close to 20 percent during Thursday's session after its earnings reports indicated strong growth and an optimistic trajectory for the future.
Akamai , which operates a network that both hosts and expedites the delivery of content online, added close to 17 percent after the company reported third –quarter revenue of $282 million, up 11 percent from the same period last year. The company generated fully taxed normalized net income of $63 million or $0.34 per diluted share. During the year-earlier period Akamai took in only $29.7 million or 21 cents a share on total sales of $253.6 million. Further intensifying investor enthusiasm for the stock was the company’s projected fourth-quarter sales. Akamai said they expect earnings between $303 million to $315 million, on the higher end of analyst predictions.
A conference call reporting earning stated that results were driven by, among other factors, continued strong demand for the company’s Dynamic Site Acceleration solutions, or DSA, along with solid early traction for Akamai security portfolio. In under a year of general availability, Akamai said they already have in excess of 125 customers leveraging their security solutions in the cloud platform.
http://editorial.equities.com/financial/cloud-computing-stocks-shine/
Akamai Reports Third Quarter 2011 Financial Results
Wednesday, October 26, 2011 16:01ET
CAMBRIDGE, Mass., Oct. 26, 2011 /PRNewswire/ --
-- Revenue of $281.9 million, up 11 percent year-over-year
-- GAAP net income of $42.3 million, or $0.23 per diluted share, up 6
percent year-over-year
-- Normalized net income* of $63.4 million, or $0.34 per diluted share,
down 1 percent year-over-year
Akamai Technologies, Inc. (NASDAQ: AKAM), the leading cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere, today reported financial results for the third quarter ended September 30, 2011. Revenue for third quarter 2011 was $281.9 million, an 11 percent increase over third quarter 2010 revenue of $253.6 million, and a 2 percent increase over second quarter 2011 revenue of $277.0 million.
Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the third quarter of 2011 was $42.3 million, or $0.23 per diluted share, a 6 percent increase from third quarter 2010 GAAP net income of $39.7 million, or $0.21 per diluted share, and a 12 percent decrease from second quarter 2011 GAAP net income of $47.9 million, or $0.25 per diluted share.
The Company generated normalized net income* of $63.4 million, or $0.34 per diluted share, in the third quarter of 2011, down 1 percent from third quarter 2010 normalized net income of $64.2 million, or $0.34 per diluted share, and down 4 percent from second quarter 2011 normalized net income of $65.8 million, or $0.35 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)
"We are pleased with Akamai's performance in the third quarter, as more customers adopted the Akamai Platform for their online businesses," said Paul Sagan, president and CEO of Akamai. "We have continued to develop the platform of choice for businesses seeking to capitalize on opportunities in mobile, cloud, security, and video, as well as manage the risks of the hyperconnected world."
Adjusted EBITDA* for the third quarter of 2011 was $122.4 million, up 7 percent from $114.1 million in the third quarter of 2010 and down 3 percent from $126.2 million in the prior quarter. Adjusted EBITDA margin* for the third quarter of 2011 was 43 percent, down 2 points from the same period last year. (*See Use of Non-GAAP Financial Measures below for definitions.)
Cash from operations was $116.3 million in the third quarter of 2011, or 41 percent of revenue. At the end of the third quarter of 2011, the Company had approximately $1.2 billion in cash, cash equivalents and marketable securities.
Sales through resellers and sales outside the United States accounted for 19 percent and 29 percent, respectively, of revenue for the third quarter 2011.
Akamai also announced today that David Kenny resigned as president and director of the Company.
"As a director, David was a strong advocate for innovation, mobile capabilities and global expansion. As president, he helped to re-align the organization to deliver faster on those critical strategies," Mr. Sagan said. "Thanks in part to David's leadership, we have established a strong path for growth that we intend to follow for many years to come."
Mr. Kenny said, "It has been a privilege to serve Akamai as a director and to be a part of the management team to help Paul strengthen the Company's foundation for future growth. While I now want to return to my first passion of pursuing emerging opportunities on the consumer Internet, I will miss the great people at Akamai and their relentless pursuit of excellence in everything they do. I believe Akamai is well-positioned to capture the opportunities ahead in the enterprise marketplace."
Mr. Kenny, who will serve as a consultant to the Company on business strategy, joined Akamai as president in September 2010 after previously serving as a member of the Company's Board of Directors for three years.
Akamai also announced today that the Board re-appointed Mr. Sagan as president, a title that he will hold in addition to CEO and director.
Share Repurchase Program
During the third quarter of 2011, under a share repurchase program that was approved by the Board of Directors in April 2011 and expanded in August 2011, the Company repurchased approximately 6.8 million shares of its common stock for $155.1 million, an average price of $22.75 per share. As of September 30, 2011, the Company had repurchased 15.2 million shares of its common stock for $406 million, at an average price of $26.82 per share, since the commencement of the current repurchase program.
As of September 30, 2011, the Company had approximately 179.5 million shares of common stock outstanding.
Continued at;
http://www.knobias.com/story.htm?eid=3.1.76c25d9f0e97f257256419aab0a54132d006b3d11274f94252cfadc55a334bcd
AKAM: Q3 Adj EPS 34c vs 34c Beats 33c Est
Thursday , October 27, 2011 06:30ET
QUARTER RESULTS
Akamai Technologies Incorporated (AKAM) reported Q3 results ended September 2011. Q3 Revenues were $281.90M; +11.18% vs yr-ago; BEATING revenue consensus by +1.09%. Q3 EPS was 23c. Adjusted Q3 EPS was 34c; 0.00% vs yr-ago; BEATING earnings consensus by +3.03%.
Q3 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $281.90M $253.55M +11.18% $278.87M +1.09%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 23c N/A N/A N/A N/A
Adj EPS: 34c 34c 0.00% 33c +3.03%
---------- ------------ ------------ ---------- ------------ ----------
AKAM: To Release Q3 Results Oct 26 [AMC]
Wednesday, October 26, 2011 08:30ET
Akamai Technologies Incorporated (Nasdaq NM: AKAM) is scheduled to release its Q3 financial results on October 26, 2011, after the close of the market (AMC).
CONSENSUS ESTIMATES:
Q3 Revenue: $278.87 million
Q3 EPS: $0.33 per share
PREVIOUS PERIOD:
Prev Q3 Revenue: $253.55 million
Prev Q3 EPS: $0.34 per share
ADDITIONAL INFORMATION
Original Confirmation
The Company will also hold a related conference call to discuss these results.
AKAM has confirmed that earnings will be announced 10/26/2011. With 20 analysts covering AKAM, the consensus EPS estimate is $0.33, and the high and low estimates are $0.34 and $0.30, respectively.
UPDATE 1-Akamai shares surge on Google deal report
Wed Oct 12, 2011 5:35pm EDT
* Akamai close to being acquired by Google - report
* Akamai a long-running subject of takeover rumors-analyst
SAN FRANCISCO Oct 12 (Reuters) - Shares of Akamai Technologies Inc jumped more than 11 percent following a report that it was close to being acquired by Google Inc .
Akamai, whose service improves the performance of websites, is nearing a deal with search giant Google, according to the late Wednesday report by technology blog Business Insider citing "multiple ad tech sources" who were not identified.
Representatives from Google and Akamai said the companies do not comment on rumors.
Akamai, whose shares closed Wednesday's regular session down 57 percent from their 52-week high of $54.65, is a long-running subject of takeover rumors. Last week, there were reports that the company could be acquired by Verizon Communications or International Business Machines Corp , said Mark Kelleher, an analyst with Dougherty & Co.
"Ever since I can remember there's been theories of who could come in" and acquire Akamai, he said.
Shares of Akamai rose more than 11 percent following the Google report, before trading up 9.1 percent at $25.45 in extended trading.
After Hours Archives
Oct. 12, 2011, 5:01 p.m. EDT
Akamai shares surge in after-hours trading
LOS ANGELES (MarketWatch) — Shares of Akamai Technologies Inc. shot higher Wednesday evening following a report that Google Inc. may be pursuing an acquisition of the company.
AKAM +8.90% recently climbed 9.8% to $25.65 in heavy volume as a report on the Business Insider news web site said multiple sources in the ad technology industry believe Google is about to buy Akamai. Akamai is a Cambridge, Mass.-based company that helps companies deliver Web content such as online video faster and more efficiently.
Nearly a dozen sources inside and outside of Google have told Business Insider “they’ve at least heard about a looming Google-Akamai deal,” according to the report, which added that a high-level source at Akamai “shot down” Google speculation.
Akamai shares finished the day session up 0.1%, leaving them, at that point, with a year-to-date loss of 50.3%.
During the regular session, U.S. stocks jumped, bolstered by expectations that Europe will manage its debt trouble.
.
Background on Rumor mill for AKAM
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59800674&txt2find=takeover
Akamai Spikes On Speculation Google Might Bid
Akamai shares are trading sharply higher after hours following a Business Insider report speculating that Google might make an offer to buy the content delivery network company.
The story says that “multiple ad tech industry sources” think Google is going to buy Akamai, asserting that almost a dozen sources say they have heard about a “looming” deal. But then the piece also says that “a high-level source at Akamai that we talked to shot down Google speculation.”
Kind of weird to shoot down your own story that way. I’d also note that rumors about an acquisition of Akamai crop up constantly. So far, they’ve all been wrong, of course.
Well, whatever. The piece is certainly having an impact: AKAM in late trading is up $2.36, or 10.1%, to $25.73.
I’d also note that Google is due to report Q3 results after the close tomorrow.
AKAM 3Q earnings 10-26-11 AMC
Akamai to Hold Third Quarter Investor Conference Call on Wednesday, October 26th at 4:30 pm ET
Thursday , September 29, 2011 06:30ET
CAMBRIDGE, Mass., Sept. 29, 2011 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud optimization services, announced today that the company will hold a conference call for investors on Wednesday, October 26, 2011 at 4:30 pm ET. The call will include the company's third quarter 2011 financial results and may include forward-looking financial guidance from management. The call will also be broadcast live via the Internet at www.akamai.com.
The live dial-in information for the conference call is:
U.S. only: (800) 573-4754
International: (617) 224-4325
Passcode: 35896882
In addition, a replay of the call will be available for one week following the conference by calling 1-888-286-8010 (or 1-617-801-6888 for international calls) and using passcode No. 90643566. The archived webcast of this event may be accessed through the Akamai Website.
About Akamai
Akamai® provides market-leading, cloud-based services for optimizing Web and mobile content and applications, online HD video, and secure commerce. Combining highly-distributed, energy-efficient computing with intelligent software, Akamai's global platform is transforming the cloud into a more viable place to inform, entertain, advertise, transact and collaborate. To learn how the world's leading enterprises are optimizing their business in the cloud, please visit www.akamai.com and follow @Akamai on Twitter.
Board of Directors Authorizes $250 Million Expansion of Share Repurchase Program
Monday , August 08, 2011 16:05ET
CAMBRIDGE, Mass., Aug. 8, 2011 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud optimization services, today announced that its Board of Directors has approved a $250 million increase in the current authorized share repurchase program, raising the total authorized amount under the program to $400 million for the twelve-month period ending in early May 2012.
The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit the Company to repurchase shares when the Company might otherwise be precluded from doing so under insider trading laws. The Company may choose to suspend or discontinue the repurchase program at any time but cannot carry over unused authorization amounts to future periods.
"The Board's authorization of an increased share repurchase program reflects our confidence in the long-term outlook of the business," said Paul Sagan, CEO of Akamai. "With our strong balance sheet and cash flows, we believe we can accelerate our share repurchases while maintaining the flexibility to make strategic investments in the future."
During the second quarter of 2011, the Company repurchased approximately 1.5 million shares of common stock for $50.5 million at an average price of $32.90 per share. As of June 30, 2011, the Company had repurchased 8.3 million shares of common stock for $251.5 million at an average price of $30.15 per share under the share repurchase programs initially approved by the Board of Directors in April 2009.
About Akamai
Akamai® provides market-leading, cloud-based services for optimizing Web and mobile content and applications, online HD video, and secure e-commerce. Combining highly-distributed, energy-efficient computing with intelligent software, Akamai's global platform is transforming the cloud into a more viable place to inform, entertain, advertise, transact and collaborate. To learn how the world's leading enterprises are optimizing their business in the cloud, please visit www.akamai.com and follow @Akamai on Twitter.
Akamai Reports Mixed 2Q
Zacks Equity Research, On Thursday July 28, 2011, 4:15 pm EDT
Akamai Technologies, Inc. (NasdaqGS: AKAM - News) reported earnings of 27 cents per share in the second quarter of 2011, in line with the Zacks Consensus Estimate, but 17.4% higher than the 23 cents per share reported in the prior-year quarter.
The year-over-year growth was primarily driven by stringent cost-cutting efforts, which led to a significant improvement in operating margin during the quarter.
Operating Performance
Adjusted EBITDA (including stock-based compensation) increased 12.6% year over year to $126.2 million in the quarter. Adjusted EBITDA margin was 45.6% compared with 45.7% in the year-ago quarter.
Operating income on a non-GAAP basis was $77.5 million, up 24.7% year over year from $61.0 million in the prior-year quarter. Operating margin in the quarter was 28.0% compared with 24.9% in the prior-year quarter.
We believe a significant decrease in costs positively affected margins in the reported quarter. Total costs and operating expenses declined 2.4% year over year to $109.8 million.
Research & development expenses decreased 19.1% year over year. Sales & marketing expenses also plunged 4.3% year over year, while general & administrative expenses increased 4.3% year over year in the quarter.
Net income was $52.2 million, up 23.0% year over year. Net income margin expanded 160 basis points (bps) on a year-over-year basis to 18.8% in the quarter.
Revenue
Total revenue in the quarter was $277.0 million, up 13.0% year over year but below the Zacks Consensus Estimate of $278.0 million. Reported revenue was, however, within management’s guided range of $270.0 million to $280.0 million.
Revenue from Akamai’s fastest growing Enterprise vertical grew 28% year over year to $37.7 million, as more customers adopted cloud services for their businesses.
Commerce increased 21.0% year over year to $58.5 million, Public sector climbed 11.3% year over year to $15.7 million and Media & Entertainment jumped 10.7% to $117.0 million. Revenue from the High Tech vertical grew 1.3% year over year to $48.2 million in the reported quarter.
During the first half of 2011, Akamai witnessed strong demand for value-added services (58% of the total revenue) across all verticals. Sales through resellers were 19.0% of the total revenue in the second quarter.
Region wise, revenue from North America climbed 10.0% year over year. Sales outside the United States contributed 30.0% to the total revenue in the quarter. International revenues jumped 20.0% year over year.
Balance Sheet
As of June 30, 2011, cash and cash equivalents (includes Marketable Securities and Restricted marketable securities) were $497.3 million compared with $563.5 million, as of March 31, 2010.
Cash from operations increased to $111.8 million from $86.4 million in the previous quarter.
During the first quarter, Akamai repurchased approximately 1.5 million shares for $50.5 million, at an average price of $32.90 per share.
Guidance
Akamai expects revenue in the range of $273.0 million to $283.0 million (8% to 12% year-over-year growth) for third quarter of 2011. Favorable foreign exchange is expected to have an impact of approximately $7.0 million on a year-over-year basis.
Akamai expects cash gross margins to remain roughly stable at about 79% while GAAP gross margin is estimated to be 57.0%.
For the third quarter, Akamai expects operating expenses to increase approximately $7 million year over year, including the annual impact of budgeted salary increases. Akamai expects adjusted EBITDA margin in the range of 42% to 43%.
Normalized EPS is expected to be between 31 cents and 34 cents, including tax charge in the range of $19 million to $23 million based on a full-year GAAP tax rate of about 32% to 35%.
Currently, the Zacks Consensus Estimate for the third quarter is pegged at 28 cents per share, well below management’s guided range.
For fiscal 2011, Akamai expects revenue growth in the range of 10.0% to 13.0%., slightly lower than its prior expectation of 15.0%.
Akamai forecasts capital expenditure (excluding equity-based compensation) of approximately $55 million for the forthcoming quarter. For fiscal 2011, capital expenditure is expected to be at the upper end or slightly above the company’s long-term model of 13% to 15% of revenues.
Recommendation
We believe that the increasing usage of cloud computing technology, higher adoption of value-added solutions, aggressive share repurchase, strategic partnerships, commerce security and online video are positives for the stock over the long term.
However, weak traffic growth remains a concern, as Akamai continues to face intense pricing pressure due to stiff competition from Level 3 Communications Inc. (NasdaqGS: LVLT - News), Limelight Networks, Inc. (NasdaqGS: LLNW - News) andcarriers such as AT&T Inc. (NYSE: T - News) and Verizon Communications (NYSE: VZ - News), who are developing their own content delivery network. We believe this will hurt revenue growth going forward.
We maintain our Neutral recommendation on a long-term basis (6-12 months). Currently, Akamai has a Zacks #3 Rank, which implies a Hold rating on a short-term basis.
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BUSINESS SUMMARY:
Akamai® provides market-leading managed services for powering video, dynamic transactions, and enterprise
applications online. Having pioneered the content delivery market one decade ago, Akamai's services have been
adopted by the world's most recognized brands across diverse industries. The alternative to centralized Web
infrastructure, Akamai's global network of tens of thousands of distributed servers provides the scale, reliability,
insight and performance for businesses to succeed online. Akamai has transformed the Internet into a more viable
place to inform, entertain, interact, and collaborate.
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