Thursday, July 26, 2007

Akamai - You had a bad day

Akamai (AKAM) was trading down as much as 10 points after reporting results and getting several subsequent downgrades.

The problem? Competition. Several notable rivals have emerged over the past few years, such as Limelight, Internap, and even Level3. Akami has been increasing capital spending and watching its traditionally rich margins contract. They will continue to grow and profit, but I think the salad days are over.

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