Based on forward P/E ratios, Akamai
Interestingly enough, Akamai has pursued a strategy that parallels Google's. Both companies have built a platform that includes sophisticated software and hardware infrastructures, building an incredible moat. Microsoft is now spending billions to try to replicate Google's operations.
Yes, Tim, emerging competitors want a piece of Akamai's fortune. In technology, advantages are fleeting, and plenty of savvy entrepreneurs, brilliant scientists, and cash-heavy venture capitalists are funding Akamai-killers. The American capitalist system is working its magic.
At some point, competitors will eat Akamai's lunch. There's potential competition from incumbents such as Google, Cisco
It's not a question of capital -- the global economy seems to enjoy a nearly unlimited supply. It's not a question of brainpower -- that commodity seems to be booming worldwide. But new technologies do perpetually face one perilous barrier: time.
A new technology might kill Akamai within the next year or so. In the next six months, it's highly improbable. Since Akamai is a stock for momentum-growth investors, its most likely backers don't care about the long-term so much as the next quarter. For the near future, Akamai's technologies are a "must-have" for a surging market. What else could a momentum investor ask for?
Shares of Akamai have risen 141% since being singled out last year in theRule Breakersgrowth stock newsletter service. See David Gardner's other high-growth picks with a free 30-day trial subscription.
Fool contributorTom Taullidoes not own shares mentioned in this article.