Posted by : Randy Cooper in (CDN)

Citi: Akamai Stock Expensive, Downgrades AKAM

Content delivery network Akamai Technologies (AKAM) is still a “core Internet stock,” but it’s not cheap enough to buy, says Citi analyst Mike Mahaney, who downgraded the stock to “hold” this morning. Shares closed Friday at $40.33, within 4% of Citi’s $42 price target. Mahaney says Akamai’s profit growth can support its current valuation — “but not one materially higher.” He says buy AKAM at $35 or below. Shares dropped 1.4% this morning to $39.77.

Source: http://vcsandangels.com/blog/?p=3675

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Randy says...

While I am not a financial analyst and don’t look at the numbers like those on the street do, I can say that I disagree with the reasons why Goldman downgraded Akamai this morning. The reasons given were large network operators entering the space, acquisition by smaller vendors by network operators and the potential entry of P2P offerings.

Please take time to read Dan Rayburn’s response to this article as he brings up some very good points.
Source: http://blog.streamingmedia.com/the_business_of_online_vi/2008/05/goldman-has-it.html

Commented on: 22 May, 11:49 am
Randy says...

Goldman: Sell Akamai (AKAM) Now

Source:
http://www.alleyinsider.com/2008/5/goldman_sell_akamai_akam_now
http://nobosh.com/s/goldman-sell-akamai-akam-now/66005/

Commented on: 22 May, 12:38 pm
Randy says...

May 22 (Reuters) – Goldman Sachs downgraded Akamai Technologies (AKAM.O: Quote, Profile, Research) to “sell” from “neutral” and added the company’s shares to its Americas Sell List on concerns that increasing competition could hurt the provider of Web acceleration services, sending the shares down 9 percent.

Source: http://www.reuters.com/article/marketsNews/idUSBNG23646620080522

Commented on: 22 May, 1:47 pm
Randy says...

Goldman Sachs wants me to sell my stake in Akamai Technologies (Nasdaq: AKAM). Quoting from yesterday’s research note: Beyond valuation, we are also concerned about intensifying competition as private entrants proliferate and selected large network operators begin to eye the space … While portions of Akamai’s customer base are likely relatively immune from competitive pressures, we believe that the majority of Akamai’s 2,700 customers will be able to put increasing pressure on the company as contracts come up for renewal this year.
My response? Go sell crazy somewhere else.

Motley Fool agrees with Dan Rayburn…
Source: http://www.fool.com/investing/high-growth/2008/05/23/goldman-gets-akamai-wrong.aspx

Commented on: 23 May, 10:22 pm

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