- Goldman has downgraded Akamai (NASDAQ:AKAM) to Sell, and cut its target by $10 to $52.
- The move comes less than a month after shares nosedived due to the soft Q4 guidance (blamed on weakness at large media accounts) provided with a Q3 beat. SA author/streaming analyst Dan Rayburn thinks the guidance is due to Apple, Microsoft, and Facebook moving more of their CDN traffic to in-house networks.
- Shares have fallen to $57.73 premarket. The 52-week low (set in February) is $56.85.
- Yesterday: Akamai strikes cloud CDN interconnect deal with Google
- Update (10:39AM ET): More details here. Goldman's Heather Bellini: "We view Street forecasts for 2016 as too high, as media delivery revenues take longer to materially snap back due to (1) large customers slowly bringing CDN in-house, (2) re emergence of more aggressive competition and (3) a focus on reducing software download sizes. As such, we see these headwinds persisting for longer than consensus is expecting." Akamai is now down 5.6%.
Akamai down 2.5% on Goldman downgrade to Sell (updated)
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About AKAM Stock
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Symbol | Last Price | % Chg |
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AKAM | - | - |
Akamai Technologies, Inc. |