Akamai Technologies Inc. Earnings: 1 Number You Need to Know

Akamai Technologies' (NASDAQ: AKAM  ) earnings report suggests the company has many more years of growth ahead, Fool contributor Tim Beyers says in the following video. Why? One number stands out: 50.

In an interview conducted the day of the report, Akamai CEO and co-founder Tom Leighton revealed that 50% of revenue for the media group that supports streamed video, gaming, and similar services originates overseas. (A third of overall revenue is derived overseas.)

That's a strong number that suggests growing global appeal for the company's core business at a time when emerging economies are getting their first real taste of broadband. Companywide, revenue improved 15% in the fourth quarter. Adjusted operating profit grew 11%. Both figures beat Street estimates and guidance also impressed.

Second, it suggests that the core business is likely more vibrant than skeptics believed just a year ago. If anything, a healthy media business gives Akamai the resources the grow the newer and more experimental areas of its business, such as security and embedded acceleration software. Ultimately, that bodes well for the stock, Tim says.

Now it's your turn to weigh in. What did you think of Akamai Technologies' earnings report? Please watch the video to get Tim's full take and then leave a comment to let us know whether you would buy, sell, or short Akamai stock at current prices.

Don't settle for double-digit gains. Go bigger.
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.


Read/Post Comments (1) | Recommend This Article (0)

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.

  • Report this Comment On February 12, 2014, at 11:39 AM, TheCh0b wrote:

    While more media goes over the top, my bullishness on Akamai also comes from the increase use of rich media in ecommerce. With online becoming customer's first stop in product research, retailers and brands are using more interactivity, more images, and more video to showcase products. Akamai is perfectly positioned to take advantage of this, particularly for mobile (Adobe is another)

Add your comment.

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: 2834028, ~/Articles/ArticleHandler.aspx, 8/23/2014 11:34:48 AM

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