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 1.8%. By the end of trading, Akamai Technologies rose $1.19 (3.5%) to $35.47 on average volume. Throughout the day, 3,300,486 shares of Akamai Technologies exchanged hands as compared to its average daily volume of 4,063,100 shares. The stock ranged in a price between $34.54-$35.60 after having opened the day at $34.57 as compared to the previous trading day's close of $34.28. Other companies within the Internet industry that increased today were: HealthStream ( HSTM), up 16.2%, Net Element International ( NETE), up 13.4%, Remark Media ( MARK), up 8.4% and Renren Inc ADR ( RENN), up 5.8%.
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Akamai Technologies, Inc. provides content delivery and cloud infrastructure services for accelerating and improving the delivery of content and applications over the Internet in the United States and internationally. Akamai Technologies has a market cap of $6.0 billion and is part of the technology sector. The company has a P/E ratio of 30.0, above the S&P 500 P/E ratio of 17.7. Shares are down 18.0% year to date as of the close of trading on Monday.

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, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, ChinaNet Online Holdings ( CNET), down 6.3%, VirnetX ( VHC), down 3.5%, Sify Technologies ( SIFY), down 3.5% and QuinStreet ( QNST), down 2.6% , were all laggards within the internet industry with Zynga Inc Class A ( ZNGA) being today's internet industry laggard.

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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