AmigoBulls Internet Daily July 25, 2013

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.

Akamai revenue chart
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.

Equinix net income chart
Source: Equinix net income chart by Amigobulls

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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