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All Good Things Must Come To An End


AKAM will probably grow into a behemoth with time, but for my money, the current stock price already knows that.


I've been on the Akamai (AKAM) bandwagon for longer than any other stock I've been involved in. I wish I could tell you that what attracted me to it back when it was a single digit puppy was some Mensa-level financial analysis, but it was not. Looking at the landscape of technology, and the lack of competition in AKAM's niche, the stock simply seemed to make sense.

The "puppy" has now grown into a pure breed champ. The fundies story still seems intact, in fact it may still be getting better. My concern is that everyone seems to be realizing this now. AKAM has set a pattern of beating estimates and raising big in the face of skeptical analysts. Now the analysts are beginning to get in front of the company, and the bar is getting raised. For example, after having the company at a "hold" for $20+, yesterday Deutsche Bank's (DB) analyst upgraded it to a "buy" - in what almost seemed like a bearish towel toss.

With digital distribution of everything except solids now becoming incorporated in our daily lives, if there are investors who have not come around to the importance of AKAM to that process, they are late to the party - to say the least.

AKAM will probably grow into a behemoth with time, but for my money, the current stock price already knows that. I have a large position in it, and it is time to cash in a good chunk of it. That way if the stock pulls back I'll have something to buy without much thought.

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Positions in AKAM, DB
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