Mon, Apr. 6, 4:11 PM
- Akamai (NASDAQ:AKAM) has acquired Octoshape, a Danish provider of services that optimize and efficiently deliver IP video content, whether IPTV streams from pay-TV providers or over-the-top (OTT) video services (e.g. Netflix, YouTube). Terms are undisclosed.
- Octoshape asserts its use of a proprietary implementation of the UDP protocol (as compared with the more widely-used TCP protocol) helps it improve streaming speeds and lower startup/buffering times, and that its multicast solutions help keep costs down. The company has 40+ employees, and counts CNN, CBS, IBM, BP, and the NBA among its customers.
- Akamai, which already handles plenty of video streams through its CDN, states Octoshape will provide it with "valuable technology and experience in the area of streaming video optimization," and help it "provide customers with the most comprehensive suite of video delivery and optimization technologies." With video deliver historically a lower-margin business for the company, Octoshape might also help Akamai upsell video clients on higher-margin services.
- The deal follows Akamai's March acquisition of DNS tech developer Xenocode.
Mon, Mar. 16, 6:19 PM
- Pac Crest's Chad Bartley: "We believe traffic growth is accelerating slightly in Q1. This should drive results near the high end of guidance and above consensus."
- Nonetheless, Bartley is maintaining a Sector Perform rating on Akamai (NASDAQ:AKAM) due to valuation concerns. Shares rose 1.8% in regular trading today, making new highs in the process. They rallied last month after Akamai beat Q4 estimates and offered in-line Q1 guidance in spite of major forex headwinds.
Tue, Mar. 3, 12:11 AM
- Akamai (NASDAQ:AKAM) has acquired Xerocole, a developer of technology (referred to as intelligent recursive DNS) that speeds the rate at which domain name servers are able to translate Web site/URL requests into IP addresses. Terms are undisclosed.
- Akamai exec Rick McConnell: "We see this acquisition as an important investment in engineering talent and technology that is intended to complement our DNS product portfolio and strategy. We believe that Xerocole has some of the best DNS experts in the industry and that recursive DNS has strategic value to the Akamai Platform and to each of our business units."
- The purchase is the latest in a string of acquisitions Akamai has made to bolster its value-added (non-commodity) CDN service portfolio. Others: Prolexic, Verivue, Blaze.
Thu, Feb. 12, 3:04 PM
- On a day the Nasdaq is up 1% (thanks in part to Cisco), notable tech gainers include wireless broadband/Wi-Fi hardware provider Ubiquiti (UBNT +5.5%), M2M hardware/service provider Sierra Wireless (SWIR +6.2%), fiber access equipment vendor Zhone (ZHNE +3.3%), CDN leader Akamai (AKAM +5.8%), 3D printing plays Voxeljet (VJET +12.5%) and Materialise (MTLS +4.4%), satellite services/hardware vendor ViaSat (VSAT +4.4%), capacitor maker Kemet (KEM +5.8%), Chinese online real estate play Leju (LEJU +5.7%), and microcap solar installer RGS Energy (RGSE +24.3%).
- With markets trading higher, the list of notable decliners is smaller. It includes fixed wireless broadband provider Towerstream (TWER -8.9%), local services marketplace Angie's List (ANGI -5%), Chinese social networking/IM platform YY (YY -4.5%), and chip packaging IP provider Tessera (TSRA -6.1%).
- Sierra, Ubiquiti, and Zhone have joined the list of telecom/networking equipment firms rallying on account of Cisco's numbers. Akamai and ViaSat are adding to the gains they saw yesterday thanks to market-pleasing earnings (I, II), and Tessera is reversing the Wednesday gains it saw on account of a Q4 beat. Voxeljet also rose sharply yesterday.
- Previously covered: Baidu, TripAdvisor, Nvidia, FireEye, Zillow/Trulia, enterprise tech stocks
Tue, Feb. 10, 5:28 PM
- Akamai (NASDAQ:AKAM) has guided on its Q4 CC (webcast) for Q1 revenue of $517M-$534M and EPS of $0.60-$0.63, in-line with a consensus of $528.4M and $0.62. A semi-cautious outlook was expected on account of forex.
- Security services (a high-margin business) remain a strong point for the CDN leader: It now has 1.7K security customers, up from nearly 800 a year ago. Media (a lower-margin business) also outperformed, thanks in part to strong gaming services demand.
- GAAP costs/expenses rose 25% Y/Y in Q4 to $400.2M (compares with 23% revenue growth). $42M was spent on buybacks.
- Shares are at $64.61 AH, putting them near a 52-week high of $65.39. Q4 results, PR.
Tue, Feb. 10, 4:03 PM
Mon, Feb. 9, 5:35 PM
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.
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