Akamai Technologies shares climb after Merriman upgrade; analyst sees competition abating
By APWednesday, March 3, 2010
Akamai climbs; analyst sees competition abating
NEW YORK — Shares of Akamai Technologies Inc. climbed Wednesday after Merriman Curhan Ford upgraded the company, citing growing Web traffic, an improving economy and a diminished threat from rivals.
The stock added 72 cents, or 2.6 percent, to $28.17 in afternoon trading. The stock earlier traded at $28.57, eclipsing a previous 52-week high of $27.68 set Tuesday.
Akamai provides technology for speeding up online communications. Merriman analyst Richard Fetyko raised his rating on the company to “Buy” from “Neutral” in a note to investors Wednesday.
He said the company’s strategy of cutting rates “appears to have stemmed customer losses to competitors.”
While that approach hurt revenue last year, the gap between prices that customers pay for Akamai’s services versus that of its rivals has begun to shrink as customers renew contracts at more competitive rates, he said.
Fetyko added that the improving economy should drive the growth of video on the Web, creating more business for Akamai.
