Mon, Jan. 5, 9:26 AM| Comment!
Dec. 30, 2014, 11:44 AM
- Believing the company will post "strong top and bottom line growth throughout 2015 and beyond," D.A. Davidson's Mark Kelleher has hiked his Akamai (AKAM +1%) target by $14 to $86, and is reiterating a Buy.
- Kelleher: "We view the company's technology as significantly differentiated in the market, both on the CDN side of the business and on the security and performance [optimization] side." He also thinks the company's balance sheet and cash flow act as a competitive advantages.
- Akamai is up moderately, and close to a 52-week high of $65.39. The company's efforts to grow sales of higher-margin security and performance-optimization solutions relative to commodity media delivery services has helped its gross margin stay in the high-60s (Q3 GAAP GM was 68%).
Oct. 29, 2014, 6:48 PM
Oct. 29, 2014, 4:03 PM
Oct. 28, 2014, 5:35 PM
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Oct. 16, 2014, 1:41 PM
- Stating checks indicate Akamai's (AKAM -2.2%) media traffic has dropped in October, Wells Fargo has downgraded the CDN leader to Market Perform, and cut its valuation range to $57-$61 from $70-$75.
- Wells is also worried about the impact of a strong dollar on Akamai's foreign sales. eBay disclosed yesterday forex is taking a toll on its 2H14 performance.
- Akamai was hit earlier this year by news major customer Apple is following Netflix's lead by building its own CDN; the CDN went live this summer. The company has made cutting its dependence on low-margin media delivery sales a priority.
- Rival Limelight (LLNW -2.5%), more dependent on media delivery than Akamai, is also off. Akamai's Q3 report is due on July 30.
Oct. 8, 2014, 1:36 PM
- Under a "strategic partnership agreement," China Telecom's (CHA +0.9%) cloud services unit will resell Akamai's (AKAM +0.1%) CDN, performance acceleration, and cloud security services. In addition, the companies plan to cooperate "in the areas of technology and network access."
- Akamai already offers CDN services in China. Its local rivals include ChinaCache (CCIH -3.4%), which is selling off today, and Alibaba.
- Separately, Akamai has updated its Ion service - it optimizes content delivery based on device, location, and other situational factors - to include faster domain name resolution, more self-service tools, and more advanced reporting features.
- Ion is one of a slew of value-added services Akamai is relying on to lower its dependence on low-margin media delivery services.
Sep. 10, 2014, 10:40 PM
- The guessing game has started over which U.S. companies Alibaba (Pending:BABA) might pursue after it becomes flush with IPO cash.
- If Alibaba's borrowing power is factored in, estimates for its total spending capacity range as high as $50B.
- Lion's Gate (NYSE:LGF), Red Hat (NYSE:RHT), and Akamai Technologies (NASDAQ:AKAM) have all been bantered around as potential targets.
- Though a long shot, the case for Yahoo (NASDAQ:YHOO) being in the mix is also intriguing. There's $12B in tax savings generated from Alibaba buying Yahoo - instead of Yahoo selling off its post-IPO stake in the Chinese company and paying the tax bill.
- Alibaba debuts on the NYSE on September 19.
Sep. 5, 2014, 5:19 PM
- "Akamai (AKAM +1.9%) is similar to Google in that sophisticated algorithms are the heart of both companies' businesses," says UBS' Steve Milunovich, launching coverage on the CDN leader with a Buy and $70 target.
- Milunovich considers Akamai's $5B 2020 sales target achievable - the 2015 revenue consensus is at $2.28B - and argues the company "has a lower P/E than companies with similar financial characteristics and only a moderate premium to companies with much lower growth and margins."
- Shares closed today not far from a post-Dot.com bubble high of $63.15. They respectively go for 4.8x 2015E sales and 22x 2015E EPS.
Jul. 31, 2014, 9:11 AM| 4 Comments
Jul. 30, 2014, 4:56 PM
- Akamai (NASDAQ:AKAM) guides on its Q2 CC for Q3 revenue of $484M-$496M and EPS of $0.55-$0.58, largely above a consensus of $484.8M and $0.55.
- Gross margin rose 160 bps Y/Y in Q2 to 68.6%. But total GAAP costs/expenses rose 30% (exceeded revenue growth of 26%) thanks to big increases in sales/marketing and R&D spend.
- $71M was spent on buybacks at an average price of $54.89.
- Q2 results, PR
Jul. 30, 2014, 4:03 PM| 2 Comments
Jul. 29, 2014, 5:35 PM
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Jul. 24, 2014, 9:45 AM
- Akamai (AKAM +1.9%) has been upgraded to Outperform by Macquarie. Q2 results are due on July 30.
- Unisys (UIS +7.9%) has been upgraded to Positive by Susquehanna. Shares crashed yesterday following a Q2 miss.
- Chip assembly/test firms ASX (ASX -4.6%) and Siliconware Precision (SPIL -1.7%) have respectively been cut to Neutral and Underweight by JPMorgan.
- As part of a coverage launch for Chinese Internet stocks, Citi has started Dangdang (DANG +6.3%), Weibo (WB +1.4%), Jumei (JMEI +2.5%), and Cheetah Mobile (CMCM +2.1%) at Buy.
Jul. 3, 2014, 5:09 PM
- 7 months after striking a deal to buy Akamai (AKAM +0.3%) rival EdgeCast, Verizon (VZ +0.1%) has rolled out a new CDN service aimed specifically at e-commerce merchants.
- The service builds upon an EdgeCast e-commerce offering (called Transact) launched before the Verizon deal. Its feature set includes value-added content protection, replication, and analytics services.
- To date, Verizon/EdgeCast has had a relatively small e-commerce customer base compared with Akamai. The CDN leader has aggressively targeted online retailers, who tend to pay a premium for CDN services guaranteeing high security and low latency, as part of its efforts to cut its dependence on low-margin media delivery services.
Jun. 2, 2014, 7:05 PM
- The Supreme Court has ruled Limelight (LLNW) is "not liable for inducing infringement" of an Akamai (AKAM) CDN patent. (court ruling - .pdf)
- The SC's ruling overturns a guilty verdict against Limelight from a federal's appeals court. The case was closely watched by tech companies who feared an Akamai victory would open the door to a large number of frivolous lawsuits from litigants claiming induced infringement.
- Google, Oracle, Cisco, and other tech giants backed Limelight in the dispute, as did the White House.
- LLNW +1.7% AH.
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