Why Akamai Stock Dropped Nearly 14% in October

Shares of Akamai Technologies (NASDAQ: AKAM) dropped 13.9% in October, according to data provided by S&P Global Market Intelligence. Most of the drop came after the company reported results for the third quarter of 2020. But investors didn't like results from rival companies like Fastly and Limelight Networks either, putting additional downward pressure on Akamai stock.

A content delivery network (CDN) like Akamai helps make the internet faster by physically placing servers closer to internet users. CDNs aren't new, but there's a heightened awareness of their usefulness. The COVID-19 pandemic has caused more people to be online and that could drag speeds down, highlighting the need for efficient CDNs. Fastly, another CDN, has been a big beneficiary of increased internet usage with its third-quarter revenue growing nearly 43% year over year.

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Source Fool.com