Trade: Sell Short AKAM Friday about 2 hours into the trading day -- we might see a bounce up lasting an hour or two to a few days before it trends down from here.
Target: $ 30.00
Timeframe: 1-4 months
This is what happens to stocks, especially growth stocks, when they miss on earnings -- even by a little. The stock gapped down at the open and went down all day. These situations almost always follow through to the down side. The exception is when the stock gaps so far down that the stock is now considered a bargain. I doubt Akamai is in that situation. How are you feeling right now if you're a fund manager and you own this stock? You're feeling big pressure and you're going to dump the stock.
July 29, 2010 -- Akamai Technologies Inc. (AKAM) reported second quarter 2010 earnings of 23 cents, missing the Zacks Consensus Estimate of 24 cents. Shares plunged more than 11% in morning trade on the Nasdaq.