stock market predictions

 
Put your mouth where your money is.
Login or Log in now
 
AKAM Akamai Technologies Inc. +41.2%
Initiated 8/17/11 $22.67 - Target 1/31/12 $32.00
Closed $32.23 1/31/12 3:59 PM
Today $28.45
Made 42.2% Consider this Stock
so we email you when someone covers it

Analyst Profile

rss
Francisco Logan
San Antonio
User since Jan 2010
Covers LUV - Go to Blog
Consider this Analyst
so we email you when they make picks
Akamai is so cheap now someone will buy it

Throwing a long deep ball to the endzone here after some pretty underwhelming picks lately.  I am not feeling too confident about the market in general but I do think that at today's price, Akamai has been so beaten down and has become so cheap, that someone will buy them. 

Who would do it?  Well, CSCO has a king's ransom of cash and short-term investments, and could make themselves relevant again with a purchase of this leader in streaming.  

NFLX could buy Akamai so as to have vertical synergy with its streaming business.  

As recently as January of 2011 Akamai was valued around $9.6 billion, now it its market cap is only $4.2 billion.  It is just begging to be bought.  Really, a pittance for a company like Cisco with $43 billion in cash and short-term investments.

Recently Cisco announced it would exit its consumer business altogether (most notably abandoning its Flip Video line) in order to refocus.  "We are making key, targeted moves as we align operations in support of our network-centric platform strategy," said John Chambers, Cisco chairman and CEO.

Cisco has a lot of money, and yet they are not a household name.  They have almost no cultural relevancy.  Their grand strategy though with network telepresence and video conferencing may be to basically provide the entire network – for businesses and consumers.  Moving bits is as important as anything else in the connected future, and although they are on the hardware side (not the pipe) this is what Cisco’s always done.

Is Cisco really going to do this?  I don't know.  To me, they have to put that money to work somehow.  But even if it's not them, I suspect someone else will snatch up Akamai.

 
Comment on this Article
Contribute to the conversation

Blog a Stock

1 Enter a Symbol
 
2 Set a Target Price
 
or Set % Change
 
3 Choose a Target Date
 
Once you have entered a symbol, information about that security will appear here.
 
What People Are Saying...
Mike Barkett said at 8/18/11 11:23 AM
There will be a buying opportunity soon here. Not sure if it's today. I have not had tremendous luck with catching the AKAM knife. This market has me wondering if the GOOG motorola acquisition will be the last one for a little while...
Mike Barkett said at 12/22/11 12:49 PM
Wish I had bought when I made that comment, but I have to say today's bump creates a short opportunity. An 18% bump on the acquirer is just asking for profit-taking.
AKAM $28.45 -0.84 (-2.9%)
 
 
AKAM: We've got the whole Internet in our hands
Opened 29.89 11/11/11
Target 32.16 by 3/30/12
Today 28.45
David Sachdev from Washington, DC

AKAM: We've got all your Content!
Opened 22.08 10/5/11
Target 24.73 by 3/30/12
Today 28.45
David Sachdev from Washington, DC

AKAM: Short term overbought, bounce down from 40
Opened 39.63 4/18/11
Target 36.00 by 5/20/11
Today 28.45
Brantley Foster from NYC

AKAM: Server farms galore, cat bowling
Opened 37.72 4/4/11
Target 48.00 by 7/29/11
Today 28.45
Aaron Eckuban from Los Angeles

 
 ^VIX  AAMRQ.PK  AAPL 
 BLIAQ.PK  CIGX  DNDN 
 DOW  DYN  EWY  FB  FRPT 
 GLUU  GOOG  GPS  GRPN 
 HEVVQ.PK  HP  INTC  LNKD  MPEL 
 MVIS  NFLX  NYT  OPEN  P 
 PCLN  PM  RXAC.PK  SFLY 
 SLB  SNE  TOL  URBN  VMW  YGE 
 YHOO  ZNGA  ZSTN.PK