Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Internet content delivery specialist Akamai Technologies (Nasdaq: AKAM ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Akamai's business and see what CAPS investors are saying about the stock right now.
Akamai facts
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Headquarters (Founded)
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Cambridge, Mass. (1998)
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Market Cap
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$3.78 billion
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Industry
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Internet software and services
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Trailing-12-Month Revenue
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$1.09 billion
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Management
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CEO Paul Sagan (since 2005)
CFO J.D. Sherman (since 2006)
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Return on Equity (Average, Past 3 Years)
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8.9%
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Cash/Debt
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$497.2 million / $0
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Competitors
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AT&T (NYSE: T )
Limelight Networks (Nasdaq: LLNW )
Level 3 Communications (Nasdaq: LVLT )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 3,353 members who have rated Akamai believe the stock will outperform the S&P 500 going forward. These bulls include beadnell and fellow Fool Sean Williams (TMFUltraLong).
Just last week, beadnell tapped Akamai as a cheap way to go for growth: "The P/E is no longer stratospheric. Web video is only going to grow, so a rising tide will float all content delivery networks."
Akamai even boasts a robust three-year average operating margin of 28.7%. That's higher than that of rival AT&T (17%), let alone Limelight and Level 3, which sport a negative average operating margin of -17.1% and -0.4%, respectively.
Sean Williams expands on the outperform argument:
I personally added Akamai to my own portfolio ... after the company guided earnings down yet again. Consolidation hype is on the rise and the company continues to pace itself at a 13% growth rate, nothing to sneeze at with a forward P/E of also 13. If you want more of my thoughts on AKAM, you can check them out here.
What do you think about Akamai, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Akamai? Add it to your watchlist.
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