Cloud Stock Sinks on Rare Downgrade

Most analysts are bullish on AKAM stock

Mar 25, 2019 at 9:57 AM
facebook X logo linkedin


Deutsche Bank downgraded Akamai Technologies, Inc. (NASDAQ:AKAM) stock to "sell" from "hold," and slashed its price target to $58 from $64 -- the lowest on Wall Street. This bearish tilt echoes last week's comments from Cowen, which said AKAM stock slid to the number 23 spot on its "conviction list," after coming in fifth last November.

Today's downgrade is relatively rare for the cloud service provider. Currently, nine covering analysts maintain a strong "buy" rating, compared to six that carry a tepid "hold" recommendation. Plus, the average 12-month price target of $79.63 is a nearly 12% premium to last Friday's close at $71.23.

Signs of skepticism are starting to creep up elsewhere, too. After hitting an eight-month low in mid-February, short interest on AKAM stock shot up 7.6% in the most recent reporting period to 7.11 million shares. This represents 4.5% of the security's available float, or 6.4 times the average daily pace of trading.

Looking at the charts, AKAM has been steadily climbing off its early January low of $57.18, up almost 19%. And while the shares are down 4.6% to trade at $67.96 in reaction to this morning's bear note, they could find support at their 80-day moving average, currently located at $68.42, while just below here is the $67 region -- home to Akamai Technologies' 80-day and 120-day trendlines.

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI