Yes! We are back to the exciting earnings season. As the quote goes, "Your greatest asset is your earning ability. Your greatest resource is your time." If you have two minutes of your time, then we can offer you valuable advice regarding the US internet stocks. Here you go.
Akamai Stock: Ah! Kah Mai... Smart, Clever, Wise
Akamai (AKAM) posted awesome Jun 2013 quarterly results beating guidance and analysts’ estimates. The company announced revenue increase of 14% ($378 million) vs. 40% increase in its net income ($62 million). We are big fans of the company’s profitability, which stood at an attractive 22% on an Adj. (non-GAAP) basis (especially given its low revenue base). We are optimistic about the Akamai stock performance in the near-future. We are keeping it under our ‘positive watch list’ as Akamai share price has risen by 25% over the past three months.
Source: Akamai revenue chart by Amigobulls
Equinix Stock: Muted Q2 Results
Equinix (EQIX) delivered muted second quarter results, unable to beat even the lower end of its top-line guidance ($530 million). Although the company claims to be witnessing all round traction across geographies and segments, we aren’t too excited about Equinix top line growth. However, Adjusted EBITDA continues to be a highlight of the quarter. But dear readers, this is a loss making company with limited upside to the Equinix share price. More importantly, seems like the company is trapped with the current debt levels.
Source: Equinix net income chart by Amigobulls