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Akamai Technologies Fell to a 7-Month Low on May 3

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Top gainers and losers

The top gainers in the S&P 500 on May 3 were:

  • Delphi Automotive (DLPH) rose 10.9%.
  • Citrix Systems (CTXS) rose 7.1%.
  • Assurant (AIZ) rose 6.49%.
  • Newfield Exploration (NFX) rose 4.4%.
  • Estee Lauder (EL) rose 4.4%.

The top losers in the S&P 500 on May 3 were:

  • Akamai Technologies (AKAM) fell 15.5%.
  • Anadarko Petroleum (APC) fell 7.7%.
  • Viacom Inc Cl B (VIAB) fell 7.5%.
  • Verisk Analytics (VRSK) fell 6.6%.
  • Automatic Data Procs (ADP) fell 6.3%.
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Akamai Technologies’ 1Q17 earnings

Akamai Technologies, a US content delivery network and cloud services provider, fell on May 3. Despite reporting strong first quarter earnings, Akamai Technologies fell due to disappointing guidance for the second quarter. According to its results, the company’s total first quarter revenues were $609 million with EPS (earnings per share) of $0.69. Its revenues rose 7.3% compared to the previous quarter. The market was expecting 1Q17 revenues of $604.7 million with EPS of $0.67.

Akamai Technologies’ 2Q17 guidance

Reporting on the company’s 2Q17 guidance, Akamai Technologies’ management expects revenues of $603 million with EPS of $0.6. The guidance disappointed the market. The consensus for second quarter earnings was $623 million with EPS of $0.65. Dr. Tom Leighton, Akamai Technologies’ CEO, said that the company had a very good quarter. He expects the company’s performance and security solutions division’s revenues to reach $450 million annually. Akamai Technologies’ performance and security solutions rose 17% year-over-year in the first quarter to $369 million.

Commenting on growth opportunities, Dr. Tom Leighton said that increasing growth in the streaming video market and the need for high-speed Internet for augmented and virtual reality applications are some of Akamai Technologies’ growth avenues. On May 3, Akamai Technologies fell 15.5% to $52.80—the lowest close since the end of September 2016.

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