Why Akamai Technologies Soared

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Akamai Technologies (NAS: AKAM) have soared today by as much as 24% after the company posted a solid second-quarter-earnings release.

So what: Revenue jumped 20% to $331 million, with adjusted net income of $78 million, or $0.43 per share. Those results easily topped the market's forecasts of $325.7 million in sales and $0.37 per share in adjusted profit. CEO Paul Sagan even said he hasn't "been this pleased in a long time."


Now what: Sagan attributed the results to adoption of Akamai's cloud infrastructure offerings and continued growth of its core content delivery business. The company also repurchased roughly 2 million shares during the quarter for $67 million. Jefferies and Dougherty & Co are out with bullish sentiments following the release, saying Akamai is early in its product cycles and stands to continue to benefit from Internet growth. Both firms rate Akamai a "buy" with a $43 price target.

Interested in more info on Akamai Technologies? Add it to your watchlist byclicking here.

The article Why Akamai Technologies Soared originally appeared on Fool.com.

Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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