Earnings Preview: Akamai (AKAM)

| About: Akamai Technologies, (AKAM)
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Akamai Technologies (Nasdaq: AKAM): $0.16/R$85.4M; next quarter $0.17/R$88.7M; FY2006 $0.71/$364.75M (keep in mind that the farther these estimates go out the more discrepancies there are). Be advised that earnings estimates can change without notice and may have already changed prior to the preparation of this note.

Conjecture: With all the options pricing in a big move and with this having been a high-flyer, you are more likely than not to see a decent price change up or down. The short interest actually looks fairly tame in the name with short interest ratio only showing 3.3%.

Analyst Calls: Even though the street and momentum traders have been behind the stock and even with all the positive business trends, the analysts on the street have a more cautious outlook because the stock has reached and greatly exceeded many of the street targets.

Chart: AKAM has been on a tear and is up almost 175% off last year's lows. If AKAM falls short or fails to offer much upside then something to note on its chart is this: AKAM could fall all the down to $30.25 or so and not do any significant damage to what has been its uptrend. If this gaps over that $35.00 mark into new territory then we are back into the old 2000 and 2001 levels from when the stock was worth a "Bajillion-Zillion".......

Options: Options traders appear to be braced for a move of $2.75-$3.10 in either direction, and based on the chart information that doesn't seem out of whack.