Akamai Has Biggest Drop Since 2011 as Forecasts Fall Short

  • At least four analysts downgraded the stock after results
  • Shares slump as much as 20% to lowest since February

Akamai Technologies Inc. slumped the most since July 2011 after the company provided forecasts for fourth-quarter revenue and earnings that missed analysts’ estimates.

Shares of Akamai fell 17 percent to $62.91 at the close Wednesday in New York, the lowest level in eight months.

The Cambridge, Massachusetts-based company, whose technology helps speed up the delivery of Web content, said Tuesday on its earnings call that it expects fourth-quarter revenue to range from $557 million to $577 million, falling short of the $591.4 million average of estimates compiled by Bloomberg. Akamai forecast earnings per share of 60 cents to 64 cents for the quarter. Analysts had anticipated 64 cents.

Jeff Van Rhee, an analyst at Craig-Hallum Capital Group, downgraded the stock from buy to hold. JPMorgan Chase & Co., Cowen & Co. and Canaccord Genuity Group Inc. also cut their ratings.

Through Tuesday, the stock had jumped 20 percent this year, while the Standard & Poor’s 500 Index was little changed.

Before it's here, it's on the Bloomberg Terminal.