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Akamai (AKAM) guides on its Q1 earnings call (webcast) for Q2 revenue of $322M-$330M and EPS of...

Akamai (AKAM) guides on its Q1 earnings call (webcast) for Q2 revenue of $322M-$330M and EPS of $0.36-$0.38; the former is above a consensus of $314.8M, but the latter is below a consensus of $0.39, and is raising new fears of strong price competition in the content delivery network (CDN) space. AKAM -7.4% AH. Rivals LLNW and LVLT could also be volatile in trading tomorrow.
Comments (1)
  • CarlK
    , contributor
    Comments (177) | Send Message
     
    Did you know that Level 3 sells the bandwidth and rents a lot of space to Akamai in Level 3 facilities? Akamai's "margins" are suffering from something more than their two recent acquisitions, and Level 3 is going direct to the same customers in the Enterprise Space across all verticals. Level 3 is operating with greater than 60 percent EBITDA margins based upon a $40B factory of cost new PP&E over a 14 year period. This won't end well for Akamai.

     

    If there is VOLATILITY in Level 3, it should be up tomorrow!

     

    Carl Rubin, The Darth Veda of Telecom's Earlier Implosion, Robert Rubin's son.
    25 Apr 2012, 06:12 PM Reply Like
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