Don't be fooled by Akamai Technologies'
Akamai's sales got a 12% year-over-year boost to $238 million, while non-GAAP earnings took a modest 1% hop to $0.46 per diluted share. These numbers significantly exceeded both the Wall Street consensus and the top end of management's own guidance.
More importantly, CEO Paul Sagan has a clear view of how to keep up that top-line growth for years to come. Akamai's data-distribution services are becoming ever more necessary to the continued health of the Internet, and high-definition video streams drive that trend in a big way.
Online video, like the clips found on Google's
Akamai stands head and shoulders above the competition from Limelight Networks
In short, heavy traffic loads across the Internet are good news for Akamai, even more so than for networking hardware giants like Cisco Systems
I still believe that Akamai is the best stock for your portfolio in 2010. The sales today look like profit-taking after a masterful 61% gain in just six months -- a surge that crushed every competitor and market index. Akamai hasn't even ignited the real rocket fuel yet.
Fool contributor Anders Bylund owns shares in Akamai and Google, but he holds no other position in any of the companies discussed here. Akamai Technologies and Google are Motley Fool Rule Breakers picks. Apple is a Motley Fool Stock Advisor selection. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like. The Motley Fool is investors writing for investors.