Akamai Has Biggest Drop Since 2011 as Forecasts Fall Shortby
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.
Through Tuesday, the stock had jumped 20 percent this year, while the Standard & Poor’s 500 Index was little changed.