Akamai Technologies Inc. (AKAM): Today's Featured Internet Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Akamai Technologies ( AKAM) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 0.7%. By the end of trading, Akamai Technologies rose 83 cents (2.2%) to $38.73 on light volume. Throughout the day, 1.4 million shares of Akamai Technologies exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $37.95-$38.95 after having opened the day at $38.03 as compared to the previous trading day's close of $37.90. Other companies within the Internet industry that increased today were: Jacada ( JCDA), up 9.7%, Authentidate Holding Corporation ( ADAT), up 8.9%, Commtouch Software ( CTCH), up 8.6%, and MeetMe ( MEET), up 7.4%.
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Akamai Technologies, Inc. provides content delivery and cloud infrastructure services for accelerating and improving applications over the Internet in the United States and internationally. Akamai Technologies has a market cap of $6.66 billion and is part of the technology sector. The company has a P/E ratio of 36.5, above the average internet industry P/E ratio of 36.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Akamai Technologies a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Akamai Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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