Why Akamai Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Internet content delivery specialist Akamai Technologies has earned a respected four-star ranking.

With that in mind, let's take a closer look at Akamai and see what CAPS investors are saying about the stock right now.

Akamaifacts

Headquarters (founded)

Cambridge, Mass. (1998)

Market Cap

$7.0 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$1.3 billion

Management

CEO Paul Sagan

Co-Founder/Chief Scientist Thompson Leighton

Return on Equity (average, past 3 years)

8.9%

Cash/Debt

$465.2 million / $0

Competitors

Level 3 Communications

Limelight Networks

Mirror Image Internet


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 3,167 members who have rated Akamai believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Kanga88, succinctly summed up the bull case for our community:

[Akamai] is a natural choice to invest to take advantage in the reliable, accelerating growth of Internet traffic. It has been a forerunner before cloud computing came into vogue. The management was challenged and the company culture forged when they had to fight for survival and cut cost after initial, excessive rapid growth. They had also learn to deal with competitors incessantly after the initial smooth ride. Its genealogy (MIT) and location in [Cambridge] means that it can recruit a steady supply of talents, who can bring fresh innovative ideas to the company ... ensuring long term success!

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Akamai may not be your top choice.

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The article Why Akamai Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.

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