E Akamai Technologies Generates Intermediate And Short-Term Bullish Signals

Akamai Technologies (AKAM) is based in Cambridge, Massachusetts and was founded in 1998. The company is a cloud-based software firm that provides application software that allows users to deliver, optimize, and secure online content. The company has been on my radar for about a year and a half and that is mainly due to its fundamental indicators. However, the stock drew my attention in the last few days because of a couple of technical indicators.

macro photography of black circuit board
Image Source: Unsplash

First, while combing through charts over the weekend I noticed the trend that Akamai has been in over the last few years and how the lows from December 2018 and March 2020 connect to form a trend line that is currently around $90. I also took note of how the weekly stochastic indicators were on the verge of making a bullish crossover—a crossover that happened when the market opened on Monday. The stochastic indicators are in oversold territory and the last time they made a bullish crossover while fully in oversold territory was in December ’18.

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This was the first bullish signal that jumped out at me. When I went to look at some other indicators on Tickeron.com, I couldn’t help but notice that the stock had gotten a short-term bullish signal from the A.I. trend prediction tool. The signal shows a confidence level of 90% that the stock will move higher over the next month.

AKAM Tickeron Signal.jpg

The prediction from Tickeron is based more on daily technical indicators as opposed to the weekly indicators I first noticed. Despite the bullish signals, it was still the fundamentals that put the stock on my radar, so let’s take a look at the stock from that angle.

Strong Earnings Growth and Profitability Measurements Have Helped Propel Akamai Higher

Over the last three years, Akamai has seen earnings grow by 27% per year. EPS increased by 8% in the most recent earnings report and earnings are expected to increase by 8% in the current quarter. Revenue has increase at an annual rate of 8% per year over the last three years and it increased by 10% in the most recent report.

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Disclaimer: Although our services incorporate historical financial information, past financial performance is not a guarantee or indicator of future results. Moreover, although we believe the ...

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William K. 1 month ago Member's comment

"Past performance does not guarantee future performance." We see that very frequently in a prospectus statement. So it is not a promise, but often a good hint as to where a company is headed.

Thanks for an interesting and educational article.