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

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 lower today making it today's featured Internet laggard. The industry as a whole closed the day up 1.2%. By the end of trading, Akamai Technologies fell 80 cents (-2.2%) to $36.27 on heavy volume. Throughout the day, 5.5 million shares of Akamai Technologies exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in price between $36-$37.41 after having opened the day at $37.17 as compared to the previous trading day's close of $37.07. Other companies within the Internet industry that declined today were: Trulia ( TRLA), down 9.4%, Synacor ( SYNC), down 6.7%, Tucows ( TCX), down 3.4%, and Demand Media ( DMD), down 2.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $6.64 billion and is part of the technology sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are down 8.6% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Akamai Technologies a buy, no analysts rate it a sell, and nine 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 growth in earnings per share, increase in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Internap Network Services Corporation ( INAP), up 10.4%, SouFun Holdings ( SFUN), up 9%, Vipshop Holdings Ltd ADR ( VIPS), up 7.8%, and Zynga Inc Class A ( ZNGA), up 7.8%, were all gainers within the internet industry with LinkedIn ( LNKD) being today's featured internet industry leader.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Resist All the Dow 22K Hoopla: Cramer's 'Mad Money' Recap (Wednesday 8/2/17)

Chevron, Universal Display, Dynavax Technologies, Schlumberger: 'Mad Money' Lightning Round

Apple Fails to Squash Lawsuit Alleging It Disabled FaceTime on Older iPhones

Akamai Technologies Stock Crumbles on Weak Current Quarter Guidance

Netflix Sees Stream of Analysts Jump Into $200 Price Target Boat