Akamai Technologies Inc. (AKAM): Today's Featured Technology 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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Akamai Technologies fell $1.64 (-4.4%) to $35.60 on heavy volume. Throughout the day, 13.4 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 $34.94-$37.49 after having opened the day at $37.22 as compared to the previous trading day's close of $37.24. Other companies within the Technology sector that declined today were: Canadian Solar ( CSIQ), down 15.6%, Dataram Corporation ( DRAM), down 12.5%, Superconductor Technologies ( SCON), down 12.1%, and New Energy Systems Group ( NEWN), down 8.8%.
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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 $6.63 billion and is part of the internet industry. The company has a P/E ratio of 33.3, above the S&P 500 P/E ratio of 17.7. Shares are down 8.9% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Akamai Technologies a buy, no analysts rate it a sell, and eight 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 somewhat disappointing return on equity.

On the positive front, BOS Better Online Solutions ( BOSC), up 44.6%, Parametric Sound ( PAMT), up 21.3%, MERU Networks ( MERU), up 17%, and RELM Wireless Corporation ( RWC), up 15.1%, were all gainers within the technology sector with First Solar ( FSLR) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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