Akamai is one of largest content delivery networks, which use specialised servers to distribute data to Internet users quickly. The networks are considered a key part of the infrastructure needed to build online video services for providers.
Akamai reported that second-quarter proﬁt was down by 7.8% as the company boosted spending to enhance its network for a wave of expected streaming video trafﬁc. Though the company said its media clients will eventually need those services, there was little talk of much new business in the third quarter, when Akamai expects revenue growth to slow to between 9% and 11%.
This is great news for long-term investors. Apple, a long time Akamai customer, is expected to deliver its new Apple TV in the new year, signiﬁcantly boosting Akamai in the process. Other content providers are gearing up to do the same.
This is a company which we should keep very close tabs on and technically look at when to enter. Akamai’s future is bright because fast, streaming content is what lays ahead is and this company is well-positioned to reap the beneﬁts.
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