The Case for and Against Akamai Technologies, Inc. (AKAM)

Akamai Technologies, Inc. (AKAM) is an interesting player in the Technology space, with a focus on Internet Information Providers. The stock has been active on the tape, currently trading at $80.57, up from yesterday’s close by 1.65%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Akamai Technologies, Inc. (AKAM) currently trades with a market capitalization of $13.67 Billion. That value represents a market adjusting for revenues that have been growing by 11.40 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $413.71 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $0.8 on a per share basis this quarter. Perhaps, that suggests something about why 1.32% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how AKAM has been acting. Looking at the stock’s movement on the chart, Akamai Technologies, Inc. recorded a 52-week high of $79.58. It is now trading -0.98999999999999% off that level. The stock is trading $74.16 its 50-day moving average by -6.41%. The stock carved out a 52-week low down at $44.65.

In recent action, Akamai Technologies, Inc. (AKAM) has made a move of +5.06% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.69% with $165.51 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of AKAM.

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