Akamai Riding High on Net Wave

NEW YORK ( TheStreet) -- Akamai ( AKAM) gains more fans on its way up.

Merriman Curran analyst Richard Fetyko upgraded the stock to buy in a research note Wednesday citing market share stability and the ever-rising tide of Internet traffic.

The Cambridge, Mass. Internet freight hauler -- or content delivery network operator -- has seen its shares rise more than 8% this year amid a period when tech investors were selling heavily.

Fetyko says the price war among Net delivery shops has reached a truce, and that competitors like Level 3 ( LVLT), Global Crossing ( GLBC) and AT&T ( T) have not had success cutting into Akamai's business.

Akamai also managed to bid low enough to win a contract with Netflix ( NFLX), as the video rental company moves toward online delivery, says Fetyko. The Netflix win illustrates how it may be possible for Internet traffic gains to more-than offset the pace of price cuts by Akamai.

The bullish scenario remains the same for Akamai: The Internet is growing.

Or as Fetyko puts it: "More web-connected devices like the ( Apple ( AAPL)) iPad, mobile devices, IPTV, and HD content will continue to drive volumes up dramatically in the next two-three years.

Akamai shares were up 2% to $27.92 in premarket trading Wednesday.

-- Written by Scott Moritz in New York.

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