Why Akamai Shares Popped

Before you go, we thought you'd like these...
Before you go close icon

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 popped by as much as 11% today after the company posted better-than-expected third-quarter earnings.

So what: Revenue rose 23% to $345 million, with adjusted earnings per share of $0.43. Both top and bottom lines bested the market's expectations, and Akamai saw meaningful increases in both gross and EBITDA margins.


Now what: Following the results, numerous analysts have upgraded Akamai. Canaccord Genuity upped Akamai to buy with a $45 price target, while Oppenheimer did the same but now gives Akamai a $50 price target. CEO Paul Sagan said the company's cloud investments have been paying off and the results speak for themselves. This was the fourth consecutive quarter of accelerating revenue growth and higher margins, Sagan added.

Interested in more info on Akamai? Add it to your watchlist by clicking here.

The article Why Akamai Shares Popped originally appeared on Fool.com.

Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Akamai Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners