Hedgeye CEO Keith McCullough is adding Akamai Technologies (AKAM) to the short side of Investing Ideas. Below is a brief note.
Consider the alternative to lighting ones Macro Tourist hair on fire with CNBC narratives about Tech vs. Rates...
and just professionally wait on some solid Tech Shorts to bounce, on #decelerating volume to lower-highs with QQQ +4% on the day!
I've been waiting on a day like this to short something Tech. Tech analyst Ami Joseph's bear case on Akamai (AKAM) is the first to get the nod.
Check out his new Tech Pro product for details like this:
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We model the business primarily on a traffic volume basis which offers growth rates in % and unit terms. We examine the rate of change of this traffic volume and model it (with some success). The takeaway: comps just got a lot harder, a fact that should continue through the Sep-Q of 2021. This means AKAM’s core organic revenue growth will decelerate, organic EBITDA growth will only happen via headcount reduction, and the multiple may contract alongside the ebbing growth. |
Sellem on green so that you aren't puking on red,
KM