BloggingStocks

Level 3 Communications Scores Lucrative Netflix Deal

Elizabeth Harrow — Thu, 11 Nov 2010 11:20:00 EST

Filed under: Major Movement, Deals, Netflix, Inc. (NFLX), Technical Analysis, Level 3 Communications (LVLT), Akamai Technologies (AKAM)

Level 3 Communications (LVLT) burst higher right out of the gate Thursday morning, as traders cheered the company's new streaming deal with Netflix (NFLX). Level 3 said it has been chosen as a primary content delivery network provider for Netflix, with the company providing support for streaming movies and TV shows. Additionally, Level 3 will store Netflix's entire streaming content library beginning Jan. 1.

This announcement confirms speculation that started swirling earlier in the week, when rumors hit Wall Street that Netflix was looking to ditch its content delivery deal with Akamai Technologies (AKAM). Shares of Akamai slipped about 3% Thursday morning, even though Netflix said earlier it would "continue to engage Akamai as part of our multivendor strategy."

Continue reading Level 3 Communications Scores Lucrative Netflix Deal

Level 3 Communications Scores Lucrative Netflix Deal originally appeared on BloggingStocks on Thu, 11 Nov 2010 11:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Akamai Tech eases congestion on the information superhighway

Joseph Lazzaro — Fri, 08 Feb 2008 17:41:00 EST

Filed under: Stocks to Buy

Some investors / readers probably are not aware that the Internet -- critical as it is today for commercial activities and the flow of information -- was not designed to handle the volume and complexity of today's web tasks. Moreover, the appearance of Internet bottlenecks created an opportunity for Akamai Technologies.

Akamai Technologies, Inc. (Nasdaq: AKAM) solutions accelerate and improve the delivery of Internet content and applications.

Analysts like Akamai's broad, 1,800-member customer base, including many blue chip companies. Further, analysts also like the fact that AKAM has continued to deliver material revenue increases and earnings gains, despite infrastructure and related expansion investments.

Further, the consensus among analysts is that 28,000-server Akamai will continue to have a competitive advantage in its key business segments for at least the next two years. The Reuters FY 2008/FY 2009 EPS consensus estimates for AKAM are $1.68 to $2.04.

Continue reading Akamai Tech eases congestion on the information superhighway

Akamai Tech eases congestion on the information superhighway originally appeared on BloggingStocks on Fri, 08 Feb 2008 17:41:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Akamai Tech (AKAM) plunges on downgrade

Brent Archer — Wed, 12 Dec 2007 12:18:00 EST

Filed under: Major Movement, Analyst Upgrades and Downgrades, Bad News, Options, Technical Analysis, Akamai Technologies (AKAM)

Akamai Technologies Inc. (NASDAQ: AKAM) stock is declining today after an analyst with Cowen & Co. cut his rating of the stock to "Neutral" from "Outperform" this morning on fears of increased competition. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on AKAM.

After hitting a one-year high of $59.69 in February, the stock hit a one-year low of $27.75 in September. This morning, AKAM opened at $36.01. So far today the stock has hit a low of $34.53 and a high of $36.35. As of 11:55, AKAM is trading at $34.68, down $2.42 (-6.5%). The chart for AKAM looks bullish and steady, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

For a bearish hedged play on this stock, I would consider a February bear-call credit spread above the $45 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in two months as long as AKAM is below $45 at February expiration. Akamai would have to rise by more than 28% before we would start to lose money. Learn more about this type of trade here.

Continue reading Akamai Tech (AKAM) plunges on downgrade

Akamai Tech (AKAM) plunges on downgrade originally appeared on BloggingStocks on Wed, 12 Dec 2007 12:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Akamai Technologies (AKAM) consolidates into a bullish flag

Larry Schutts — Tue, 16 Oct 2007 14:41:00 EST

Filed under: Analyst Upgrades and Downgrades, Good news, Technical Analysis, Akamai Technologies (AKAM), Stocks to Buy, Technology

The Internet is a busy place and sometimes the traffic patterns can stand in the way of business efficiency. There is an outfit in Cambridge, Massachusetts that runs interference for big clients, keeping their Web performances up to proper corporate standards.

Akamai Technologies (NASDAQ: AKAM) provides services for the delivery of enterprise Internet content. Through its network of some 15,000 servers in nearly 70 countries, Akamai analyzes and manages Web traffic, transmitting client content through the server geographically closest to the consumer. The company also offers audio and video streaming services, business intelligence and content targeting applications, as well as on demand pay-as-you-go extra capacity to avoid network congestion during periodic spikes in traffic. Clients include Adobe Systems (NASDAQ: ADBE), FedEx (NYSE: FDX) and XM Satellite Radio (NASDAQ: XMSR).

The stock rose last week, on word the firm had launched a service to boost the speed and quality of e-mail, voice over IP services and file transfers within an organization. The service also speeds up access for employees using wireless and remote fixed-line networks. Akamai said expanding companies need such services, as employees and business partners become more dispersed. AmTech Research subsequently initiated the stock with a "buy" and a $50 price target.

Continue reading Akamai Technologies (AKAM) consolidates into a bullish flag

Akamai Technologies (AKAM) consolidates into a bullish flag originally appeared on BloggingStocks on Tue, 16 Oct 2007 14:41:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Akamai Technologies (AKAM) soars on Buy rating, new director

Brent Archer — Wed, 10 Oct 2007 13:45:00 EST

Filed under: Good news, Analyst Initiations, Options, Technical Analysis, Akamai Technologies (AKAM), Blackstone Group L.P (BX), Technology

Akamai Technologies Inc. (Nasdaq: AKAM) shares are trading higher today after AmTech Research initiated coverage on AKAM with a buy rating. Also today, AKAM named Jill A. Greenthal, an adviser at Blackstone Group (NYSE: BX) to its board of directors. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on AKAM.

After hitting a one-year high of $59.69 in February, the stock dropped to a 52-week low of $27.75 in September. AKAM opened this morning at $36.11. So far today the stock has hit a low of $36.09 and a high of $37.94. As of 12:52, AKAM is trading at $37.30, up $1.68 (4.7%). The chart for AKAM looks bullish but improving, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $25 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade, will make a 4.2% return in just 3 months as long as AKAM is above $25 at January expiration. Akamai would have to fall by more than 33% before we would start to lose money.

AKAM hasn't been below $25 at all in the past year and has shown support around $31 recently. This trade could be risky if the company's earnings (due out on 10/24) disappoint, but even if that happens, this position could be protected by strong support between $29 and $31, where AKAM has held firm for the past two months.

Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: At publication time, Brent neither owns nor controls positions in AKAM.

Akamai Technologies (AKAM) soars on Buy rating, new director originally appeared on BloggingStocks on Wed, 10 Oct 2007 13:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Akamai: Riding the digital highway

Steven Halpern — Wed, 25 Apr 2007 09:56:00 EST

Filed under: Newsletters, Akamai Technologies (AKAM)

"Video is the new email," states Toby Smith, referring to his forecast that video content over the internet is developing into the next "must-have" service.

The editor of ChangeWave Investing explains, "At the heart of this data highway is Akamai Technologies (NASDAQ: AKAM), which helps move all these video files from servers to your computer or other digital devices."

Until recently, the advisor notes, if you wanted to watch a TV show, you had to watch it on your TV set. Today, he says, and especially over the next five years, you're going to watch TV and other digital content on literally every screen you own. Further, he notes, soon this content will be delivered in high def -- which he considers the next "killer application."

Meanwhile, he adds, all this information has to get from "point A to B in the most efficient way possible." And, he feels, the company best poised to help in this effort is Akamai, which he notes is already the "biggest and best facilitator" of this web traffic. The company, he points out, already delivers 20% of all traffic on the web. But, he adds, it still has room to grow.

Smith notes that Akamai's system is the world's largest platform for on-demand distributor computing, delivering web content and applications for more than 2,000 customers in 71 countries. Its customer list, he adds, reads like a 'Who's Who' of the web.

Continue reading Akamai: Riding the digital highway

Akamai: Riding the digital highway originally appeared on BloggingStocks on Wed, 25 Apr 2007 09:56:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments