Akamai Technologies (NASDAQ:AKAM) – This has been a favorite of the Trade of the Day since Oct. 31, 2011, when I recommending the stock at $29.
And on Feb. 9, 2012, I said, “AKAM reported fourth-quarter earnings of 45 cents per share, trouncing analysts’ estimates of 40 cents, and revenues were up 15%, well ahead of Street estimates.”
The stock hit our target of $40 in after-hours trading yesterday in anticipation of another upside earnings surprise. Instead the company initially said that Q1 earnings had missed the mark by reporting 24 cents a share, but that was including acquisition costs. The number without the costs was 41 cents versus its prior estimate of 36 cents to 39 cents.
After earnings were reported, AKAM plunged to under $35 as a result of the announced retirement of their CEO.
As you can see from last night’s trading, this is a very volatile technology stock, so a pullback to the low $30s might be a place to reinstate new positions.