Stock to Sell #1: Akamai Technologies (AKAM)
|Akamai Technologies, Inc. (NASDAQ: AKAM) is a developer of solutions designed to accelerate and improve the delivery of Internet content.The stock has more than doubled in one year and jumped 43% in the past seven weeks. With a price/earnings ratio of 59 times 2010 earnings, and the stock selling at more than 35% above its 200-day moving average, it appears time to cash in this high performer and nail down a profit.
Technically AKAM is in a powerful bull market, but a small top is forming and a close under $50 could result in a quick drop to $40 to $45. S&P rates AKAM a “two-star sell.”