• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Akamai Technologies Could Rally Further -- But I Am Waiting

Here's the level when the shares become compelling to me,
By BRUCE KAMICH
Nov 05, 2020 | 08:45 AM EST
Stocks quotes in this article: AKAM

In his first "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer welcomed back Dr. Tom Leighton, founder and CEO of Akamai Technologies (AKAM) , the network services provider that saw its shares pop 3.8% Wednesday after the company reported strong earnings with revenues up 12%.

Leighton said that Akamai was paying very close attention to the election traffic Tuesday night. The major news sites saw a five-fold increase in traffic that peaked around midnight Eastern. The 2020 election beat out the 2016 election, which was itself a record for Akamai as well.

When asked about that growth, Leighton said news apps are becoming better than watching TV because consumers can customize their experience and see exactly the content that matters most to them. The coming 5G wireless revolution will only make that experience even better, he said.

Back on October 9, we said, "Traders should approach AKAM from the long side risking a close below $105. Add to longs above $115. The $146-$150 area is our price target." With a recent decline I assume many traders have taken a loss. Let's see if there is a reason to rebuy AKAM.  

In the updated daily bar chart of AKAM, below, we can see that prices broke down below the September lows and gapped below the cresting 200-day moving average line. The slope of the 50-day moving average line has been negative since late October.

The On-Balance-Volume (OBV) line has been in a decline since the early part of October telling us that sellers of AKAM quickly turned more aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved below the zero line last month for an outright sell signal. 

 
In the weekly bar chart of AKAM, below, we can see a mixed picture. Prices have closed below the cresting 40-week moving average line but prices have been bouncing back and should retest the underside of this average. Maybe we close back above the line. We'll see. Prices broke below the 40-week line in March and eventually recovered but now the rally is more mature in age.
 
The weekly OBV line has turned lower after topping out from July. The MACD oscillator is pointed down toward the zero line. 
 
 
 
In this daily Point and Figure chart of AKAM, below, we can see that prices met a downside price target of $97. 
 
 
In this weekly Point and Figure chart of AKAM, below, we can see a potential longer-term price target in the $74 area. This potential weakness could be negated if prices rallied strongly. Point and Figure targets are not set in stone.  
 
 
 
Bottom-line strategy: AKAM is making a recovery but in my opinion the charts do not become compelling until they cross back above $110.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Semiconductors & Semiconductor Equipment | Software & Services | Technology | Mad Money | Executive Interview

More from Stocks

You Know What They Say About Dull Markets ...

James "Rev Shark" DePorre
Aug 18, 2022 4:37 PM EDT

Don't short 'em. Let's look at how investors responded to the thin trading and lack of big news -- and what we can expect to come.

With Oil, Keep Your Eyes on the Prize by Focusing on Supply

Jim Collins
Aug 18, 2022 3:59 PM EDT

The earth's oil supply is only going in one direction -- down -- and here's what that means for investors.

I Dislike Blue Apron But Here's a Trade, No Strings Attached

Mark Sebastian
Aug 18, 2022 2:30 PM EDT

The company is never going to make money and is likely heading back below $3 a share.

Europe's Recession Is All About Gas

Maleeha Bengali
Aug 18, 2022 1:30 PM EDT

Prices could very well stay elevated for a long time despite the economy going into a manufacturing recession.

The VIX and SPIKES Have Similarities, But There Are Meaningful Differences

Mark Abssy
Aug 18, 2022 12:00 PM EDT

And if you feel that volatility is an asset class that has a place in your strategy there are 2 funds that may be worth a closer look.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:23 PM EDT STEPHEN GUILFOYLE

    We're Cleaning Out This Retailer From the Bullpen

    Check out the latest moves in TheStreet's Stocks U...
  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login