“Akamai Technologies reported Q2 profit that missed views amid network investments tied to the delayed launch of Web TV services by Apple, sending its stock down late Tuesday,” Reinhardt Krause reports for Investor’s Business Daily. “Akamai’s current quarter EPS and revenue guidance also fell short of expectations. Akamai’s stock fell 11% in after-hours trading.”
“Akamai is the biggest provider of content delivery network (CDN) services to media and entertainment companies. Akamai’s capital spending jumped 34% to $112.4 million from the year-earlier period,” Krause reports. “Akamai has upgraded its network of computer servers to support a Web TV service planned by long-time customer Apple. Apple’s Web TV launch may slip into 2016, analysts say.”
“Akamai CEO Tom Leighton, on its earnings call, said there’s potential 2016 upside as well as risk in video-related network investments,” Krause reports. “‘It’s really hard to predict the rate of adoption and when new OTT (over-the-top TV) services will become available,’ Leighton said.”
Read more in the full article here.
MacDailyNews Take: Hopefully much will come together (HomeKit, Apple TV, Applel Watch, iPad, iPhone) when Apple’s Internet TV service is finally revealed in all of its glory.
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