Akamai continues to defy analyst worries
October 29, 2007 10:02 am SmartGuyAB CommentsAkamai (Nasdaq: AKAM) reports 40%+ growth and announces strong forecast, analysts worry. It’s the same old story, and one that I believe will ultimately reward AKAM shareholders. I first made AKAM a SmartGuyStocks pick in August, after the company reported stellar earnings yet got crushed due to unfavorable analyst comments. At that time, a variety of analysts bemoaned AKAM’s future, insisting that the days of fast growth and high profit margins were over due to major competition. Later that month, those analysts smiled with glee as competitor Limelight announced a new deal with Microsoft.
But rather than signaling the end of AKAM’s growth run, these moments were actually great opportunities to gobble up shares on the cheap. Despite all the predictions of doom and gloom, CEO Paul Sagan stepped up to the podium last week and announced yet another brilliant quarter of explosive growth, high margins, and low churn. Said Sagan, “We were very pleased with our third quarter results and the demand we saw for our services, especially as we experienced increased momentum during September.” Not exactly music to the ears of naysayers.
Yet some people just never learn. Several analysts came out again and reiterated their concerns about increased competition. As long as the demand for digital content delivery continues to grow and AKAM continues to execute as the industry leader, the analysts can agitate all they want. Like its fellow Boston- area residents, the New England Patriots, you can count on Akamai to regularly deliver spectacular
results.
Disclosure: SmartGuyAB is long AKAM
October 30th, 2007 at 12:09 pm
Sell AKAM and buy MCHX. Content delivery growth will slow down as we head into a recession.
October 31st, 2007 at 10:20 am
And just how exactly is MCHX recession-proof?
November 19th, 2007 at 12:22 pm
Canaccord Adams upgrades Akamai Technologies (Nasdaq: AKAM) from Hold to Buy with a $44.50 price target.
Commenting on Akamai, the firm said, “We are upgrading Akamai Technologies to a BUY recommendation based on: our growing confidence in the company’s competitive position with regard to pricing; expectation for a seasonally strong December quarter; and valuation.”
The firm said growing Internet traffic and demand from content providers for fast delivery will propel the company’s growth for the next several years at a minimum.
November 28th, 2007 at 2:07 pm
“Internet content delivery player Akamai reported that peak traffic to U.S. retail sites during Cyber Monday — the first Monday after Thanksgiving — increased 30 percent from last year, reaching 4.6 million global visitors per minute.”
Just more support of the secular trend, increased internet traffic, of which AKAM will prove to be a major beneficiary…