Akamai Technologies (AKAM) is the largest cloud technology company that helps businesses deliver cloud delivery content through their high-availability servers across the world. A few days ago, their stock dropped over 13% when their earnings report was released. The company did hit their numbers but their guidance was lower than analysts expects. The stock experienced a major drop in the morning after earnings but the company stock price has been steadily moving up since the release.
One major proponent of the stock is the CEO who has multiple million dollar purchases of the stock. He believes that the price is too low and started these purchase only this year.
Technically, major stock price drops like this usually follow with a “dead cat bounce” which means this stock will continue with the down trend. If this happens, expect to get the stock as a cheaper price in the following week. I am not sure if this is a good long-term stock as Amazon and Facebook have been building out their own hardware to replace Akamai’s services. However, there are many other businesses that use Akamai including Netflix which will definitely help increase their revenues going forward.