Akamai Drops 10%: 2Q, Q3 View Miss; Bracing for OTT Surge

Roshan Dwivedi Published on : 29 July 2015

Shares of Internet bandwidth provider Akamai Technologies are down $7.65, or over 10%, at $66, in late trading, after the company delivered a weaker-than-expected Q2 earnings report, and forecast this quarter’s revenue and profit below consensus.

The content-delivery and Internet security firm posted adjusted earnings of 57 cents a share, a penny below Wall Street’s estimate, and down 2% from a year ago. (The company notes that EPS was up 3%, adjusted for foreign exchange.) Revenue, up 14% to $541 million, was in line with estimates, per FactSet.

The company called out its continuing investment and preparation for over-the-top television services, and it highlighted 2016 as a likely breakout year for so-called OTT video services, or “over-the-top” streaming of video.

Akamai’s servers touch a significant amount of the world’s Internet traffic, so it’s in a good position to see the transition to OTT. The company plans larger-than-usual CapEx outlays this year as it prepares for the surge in streaming traffic.

Read the entire story here.

Written by: Roshan Dwivedi

Add your comment

Leave a Reply Cancel reply

Try Muvi One free for 14 days

No Credit Card Required

.muvi.com

Your website will be at https://yourname.muvi.com, you can change this later.

I agree to Muvi's Terms & Privacy Policy.

Upcoming Webinar

December 07

8:00AM PST

The Evolution of Streaming: Past, Present & Future with Muvi

Let’s uncover the past, navigate the present, and chart the course for what’s next in the dynamic world of streaming! In this webinar, we’ll embark on a journey through the dynamic landscape of streaming, exploring its roots, current state, and the exciting innovations shaping its future, all while uncovering the role of Muvi in this transformative journey.

Things the webinar will cover:

Introduction to Streaming’s Origins:
- Tracing the beginnings of streaming technology.
- Milestones and key developments that laid the foundation.
Current Streaming Landscape:
- Overview of the current streaming ecosystem.
- Market trends, consumer behavior, and the impact of global events.
Muvi’s Contribution to Streaming:
- How Muvi has played a pivotal role in the evolution of streaming.
- Case studies and success stories highlighting Muvi’s impact.
Technological Advancements:
- Exploring cutting-edge technologies influencing streaming.
- Muvi’s role in integrating and harnessing these advancements.
Content Delivery Strategies:
- Diversification in content types and formats.
- Muvi’s solutions for optimizing content delivery.
Monetization Models:
- Examining varied revenue streams in streaming.
- Muvi’s tools for effective monetization and subscription management.
User Experience and Engagement:
- Enhancing user satisfaction and engagement.
- Muvi’s features for creating a seamless streaming experience.
Future Trends and Innovations:
- Predictions for the future of streaming.
- Muvi’s roadmap and commitment to staying ahead of industry trends.