Why Akamai Technologies Shares Roared Higher

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Akamai Technologies (Nasdaq: AKAM  ) roared higher today by as much as 11%, after the company said it had partnered with AT&T (NYSE: T  ) to provide content delivery network, or CDN, services.

So what: That addresses fears that AT&T would launch its own competing CDN, which is certainly good news for investors. The possibility of carriers erecting their own CDNs has been a possible threat for some time. The pair said they would be focusing first on the North American market, but will subsequently expand within the next year or so.

Now what: Akamai will be deploying its CDN servers within AT&T's network infrastructure, boosting efficiency of its delivery services. AT&T is planning to transfer its current CDN operations to Akamai's platform next year. The two companies will share certain resources, like technical support and customer service. The deal isn't expected to affect Akamai's earnings in fiscal 2013.

Interested in more info on Akamai Technologies? Add it to your watchlist by clicking here.

 

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2143103, ~/Articles/ArticleHandler.aspx, 10/24/2014 4:47:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement