Shares of Akamai Technology – ticker AKAM – are trading higher today and appear to be entering a new Uptrend. Akamai provides software and hardware technology to improve the delivery of content over the Internet. This allows for faster streaming video and other applications where speed is essential to an improved end user experience. With the increased amount of video and other media being moved over the Internet (from companies such as Netflix and Hulu), the demand for Akamai’s solutions appears to also be increasing.
Akamai recently announced a deal with web hosting provider Rackspace where Akamai’s web optimization services would be offered to Rackspace’s hosting customers. Rackspace is a leader in hosting services and as more companies move products to the internet – or to the “cloud” – the demand for Akamai optimization should rise as well.
With these positive underlying fundamentals in place, the next step is timing a potential trade. SmarTrend analysts tell us that its proprietary algorithms have signaled that Akamai shares do indeed have a strong change of continuing higher. Looking at the chart, we can see the start has recently broke above the 30 and 50-day moving averages which is a bullish signal. Further, the 200-day moving average – which measures longer term strength – also continues to trend higher.
Akamai reports earning in early February and its shares could find a bid as that date approaches – possibly even testing prior recent highs around $55 per share.