“Akamai Technologies will gain from soaring data consumption driven by online video as well as selling more products to existing customers, says Pacific Crest Securities, which resumed coverage of the content delivery network provider with an overweight rating,” Reinhardt Krause reports for Investor’s Business Daily.
“Pacific Crest analyst Michael Bowen also said in a research report that he expects upside from Apple’s launch of a Web TV service,” Krause reports, “though timing is uncertain and though Apple reportedly is building its own CDN.”
Apple is reportedly building out its own CDN network for its own benefit as the company has a new streaming music service and could add a streaming video service. We believe that Apple has used Akamai’s CDN capabilities in the past, and while Apple could be building out its own CDN, we believe that Apple could continue to be a customer for Akamai, especially during large software updates that require significant scale that its own CDN may not yet be able to handle. — Pacific Crest analyst Michael Bowen
Krause reports, “Bowen’s price target of 91 is 20% above Akamai’s closing price Wednesday of 73.06.”
Read more in the full article here.
MacDailyNews Take: It will likely take some time for Apple to build out a robust CDN of their own.
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