Please ensure Javascript is enabled for purposes of website accessibility

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

By Tim Beyers - Feb 11, 2014 at 9:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A Fool studies Akamai Technologies' earnings report and reveals the one number investors need to pay attention to now.

Akamai Technologies' (AKAM -2.41%) 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.

Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Netflix at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Akamai Technologies, Inc. Stock Quote
Akamai Technologies, Inc.
$95.72 (-2.41%) $-2.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.