Akamai (AKAM) Holds Yesterday's Big Gains

After jumping nearly 19 percent Thursday after the acquisition of Cotendo, Akamai Technologies, Inc. (Nasdaq: AKAM) is holding onto the big gains in early trading Friday. Shares last traded at $31.71, up $0.08.

Wall Street applauded the acquisition of its smaller rival, which focuses on mobile and cloud, and shorts ran into hibernation.

Analysts speculated that Akamai was being defensive with the acquisition, as Cotendo was said to be stealing AT&T (NYSE: T) business from the company. However, the deal now puts Akamai in play.

"Assuming the relationship between AT&T and Contendo survives the merger and that Akamai can further enhance its capabilities with AT&T, it would then be possible for us to envision a scenario whereby Akamai itself becomes a logical acquisition target," a Collins Stewart analyst said.

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