Akamai CDN Pricing Too High, Analyst Says

Akamai (AKAM) is losing deals in an attempt to hold the line on content delivery network pricing, according to Merriman Curhan Ford analyst Richard Fetyko, who late yesterday cut his rating on the stock to Sell from Hold.

Fetyko asserts that Akamai’s CDN pricing “remains way out of line”–30-100 percent higher–compared to its largest competitors, Limelight (LLNW) and Level 3 (LVLT). He contends the high prices are resulting in lost deals, including two large e-commerce customers recently. Fetyko writes in a research note that Limelight is picking up market share, “and is expected to make a couple of meaningful announcements” on new customers shortly.

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