This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cult Stocks: Akamai Is a Survivor

Stocks in this article: AKAM QCOM

This post appeared earlier Thursday on RealMoney . Click here for a free trial, and enjoy incisive commentary all day, every day.

Akamai Technology (AKAM) is a true child of the dot-com era. The Internet facilitator came public in November 1999 near $190, just four months before the tech bubble broke, triggering a historic bear market decline. This classic cult favorite still had time to double in price before that liquidity-fueled market fell off a cliff, hitting $345 on the first trading day of 2000.

Old-timers might recall this was just five days after PaineWebber equities analyst Walter Piecyk published his infamous $1,000 price target on Qualcomm (QCOM). Flash forward 10 years, and you'll notice a major difference between these two tech stocks. In a word, no one wants to own Qualcomm while just about everyone wants to own Akamai.

It's a major accomplishment for this issue to be trading at a three-year high in the middle of a major correction that has dropped most of the tech universe to considerably lower prices. This resilience reflects intense interest in the company at a time that speculative fervor for equities has dropped through the floor.

However, it's still foolish to assume this tech juggernaut will ever return to the glory days of 2000, when the Nasdaq 100 index was trading over 5000. But that shouldn't stop active investors who are still on the sidelines from taking a closer look at this market leader and seeing if it deserves a place their long-term portfolios.

What about short-term trading opportunities with Akamai? Is there upside or downside in this issue as we head into the historically tumultuous months of September and October? And, if you're already holding the stock, it is time to book a few profits? Or should you add more risk to a small position?

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs