Akamai Technologies, Inc. (AKAM) Droops On Weak Results, Guidance: Good Time To Buy?

What does the smart money think about Akamai Technologies, Inc. (NASDAQ:AKAM)?

According to Insider Monkey’s hedge fund database, Clifton S. Robbins’ Blue Harbour Group had the most valuable position in Akamai Technologies, Inc. (NASDAQ:AKAM), with around 5.5 million shares worth close to $389.5 million, comprising 11.8% of its total 13F portfolio at the end of March. The second-most bullish hedge fund manager was the Philippe Laffont-led Coatue Management, which held around 4.5 million shares valued at $322.4 million; the fund had 3.1% of its 13F portfolio invested in the stock. Some other peers with similar optimism encompassed Cliff Asness’ AQR Capital Management, David Goel and Paul Ferri’s Matrix Capital Management, and Robert Bishop‘s Impala Asset Management.

There were some hedge fund managers who opted to open fresh positions in the stock during the first quarter. Matrix Capital Management initiated the largest position in Akamai Technologies, Inc. (NASDAQ:AKAM) during the first quarter, while Impala Asset Management’s position in the stock was also a new one. The other funds with brand new Akamai positions include Stanley Druckenmiller’s Duquesne Capital, Gordy Holterman and Derek Dunn’s Overland Advisors, and Andrew Sandler‘s Sandler Capital Management.

Hedge funds were slightly bullish on the stock during the first trimester, but the latest second quarter earnings and soft third quarter guidance raise concerns about the outlook for Akamai Technologies, Inc. (NASDAQ:AKAM) for the rest of 2015 in the crowded cloud services space. We don’t recommend buying it at this time.

Disclosure: None