Akamai Technologies Stock Climbs 13% On A 5-Day Winning Streak
Akamai Technologies (AKAM) stock is on a 5-day winning streak, up 12.9% since the run began. That added about $1.6 billion to the company’s market value, which now stands at about $14.2 billion. The stock closed at $98.50 on Monday, October 26, 38.9% below its 52-week high of $161.14 and 36.9% above its low of $71.97.
The Streak Next To The S&P 500
Returns for AKAM and the S&P 500 over the streak and the periods around it, all ending Monday, October 26 and including dividends:
| Return Period | AKAM | S&P 500 |
|---|---|---|
| 1 Day | 5.3% | 0.7% |
| 5 Days (Current Streak) | 12.9% | -0.2% |
| 1 Month (21 Trading Days) | -13.6% | -0.8% |
| 3 Months (63 Trading Days) | -11.9% | 3.6% |
| Year To Date | 12.9% | 13.2% |
| 1 Year (252 Trading Days) | 32.0% | 15.3% |
Is This Move About Akamai Technologies Or The Market?
Over the same 5 trading days, the S&P 500 returned -0.2% including dividends, so the run is mostly Akamai Technologies’ own story rather than the market’s. 12 other S&P 500 stocks are currently on winning streaks of 5 days or longer. Over the past three months the stock is down 11.9%, a window that includes the streak; over the other 58 sessions of that window it was down 22.0%.
Is The Business Keeping Up With The Stock?
On the fundamentals, revenue grew 5.9% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 11.9%, versus a median of 21.6%; and the stock trades at 34.7 times trailing earnings against a median of 34.7. The read is mixed.
If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.