Akamai Technologies, Inc. ($AKAM) Stock | Shares Gap Up on Positive Earnings Results

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Akamai Technologies, Inc. (NASDAQ: AKAM)

 

 

Akamai Technologies, Inc. (AKAM), a content delivery network services company on Tuesday reported their fourth quarter and full year 2015 financial results. AKAM reported earnings of $0.72 per share which beat analyst expectations of $0.62 per share. AKAM reported fourth quarter revenues increased 8% year over year to $579 million which beat analyst expectations of $568.7 million.  

 

Akamai Technologies, Inc. CEO’s Comments

“Akamai’s solid fourth quarter performance capped off an excellent year on both the top and bottom lines,” said Dr. Tom Leighton, CEO of Akamai. “Revenue achievement in the quarter was driven by a robust online holiday shopping season, as well as continued rapid growth of our Cloud Security Solutions.  Our Security business grew 50% year-over-year in constant currency and has now achieved an annualized run rate of nearly $300 million.”  PR Newswire

 

AKAM Technical Analysis

AKAM Chart

AKAM gapped up in price yesterday to $46.94, up from the prior day’s close of $39.57, which is a 19% decrease in price. Taking a look at the daily chart we can see that the last time AKAM traded above this price level was on January 8th when it traded at $48.10. Taking a closer look at the daily chart we can see that AKAM has been in an overall decline dating back to October 27th when it traded at $75.55. AKAM has a float of 172.84 million shares and is trading over 5 times the normal daily trading volume. AKAM did reach pre market highs of $47, but gave back $0.06 at the open. For trading purposes, my entry point would have been $47 looking for a run to $49. My stop loss would have been $46.75, fearing anything below that and the stock would start to fill in the gap up.

 

Company Profile

Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing online content and business applications in the United States and internationally. The company offers media content delivery solutions to execute digital media distribution strategies, including download delivery solutions for the distribution of file downloads, such as games, progressive video and audio files, documents, and other file-based content; and adaptive delivery solutions for streaming video content in various bitrate streaming formats; content preparation and packaging for multiple platforms, a customizable media player, and content protection technologies; a suite of analytics tools to monitor online video viewer experiences and the effectiveness of Web software downloads, while measuring audience engagement, and quality of service performance; and NetStorage, a cloud storage solution. It also provides application delivery and cloud performance solutions to enhance the operation of applications used by enterprises to connect with their customers, partners, employees, and suppliers; and Web performance solutions to accelerate business-to-consumer Websites that integrate collaborative content and applications into their online architecture. In addition, the company offers cloud security solutions, which helps customers avoid data theft and downtime, and protect Internet-facing infrastructure; and cloud networking solutions to help customers enhance enterprise branch office and retail store productivity and revenue by accelerating applications, reducing bandwidth costs, and extending the Internet and public clouds into private wide area networks. Further, it provides network operator solutions; and professional services and solutions. The company markets and sells its services and solutions through direct sales and service organization; and through active channel partners. Akamai Technologies, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.  Yahoo Finance

 

 

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