Small-Cap Winners & Losers: Akamai

The Commerce Department released that the gross domestic product increased 1.9% in the second-quarter of 2008 -- an improvement of the 0.9% growth in the first quarter but below what economist forecasts of 2.4%. The news pushed the Dow Jones and the S&P 500 down about 1% each, while the Nasdaq traded in positive territory by about 0.5%. The Russell 2000 and the S&P 600 were being dragged down with the sell-off in the Dow Jones with the Russell 2000 was trading at 713.86 and the S&P 600 Small Cap was at 371.71, both down about 1%.

Shares of Zones (ZONS Quote) surged nearly 52% to $8.30 after the board of directors agreed to be acquired by Firoz Lalji, Zone's chairman and CEO, for $8.65 a share.

Shares ofLHC Group (LHCG Quote), one of the largest home-nursing providers, rose sharply by 17% to $27.39 after exceeding analysts' earnings and sales estimates for the second quarter.

LHC earned $6.3 million, or 35 cents a share, compared with earning $5.0 million, or 28 cents a share, in the same period last year. Analysts expected earnings to be 34 cents a share on revenue of $89.23 million. The company also increased its guidance. It now expects revenue of $350 million to $370 million and earnings of $1.35 to $1.45 a share; analysts expected $1.34 a share on revenue of $353.54 million.

Shares of Akamai Technologies (AKAM Quote) plummeted by 25% to $23.26 after being downgraded by Friedman Billings this morning to market perform from outperform as a result of the company's second-quarter earnings.