Why Akamai Technologies, Corning, and Wynn Resorts Slumped Today
Wednesday was largely a positive day on Wall Street, and the Dow Jones Industrials led major benchmarks higher on the strength of earnings results from two key components. Investors were unfazed by the Federal Reserve's announcement that it intends to make good on its promise to start reducing the size of its balance sheet for the first time since implementing quantitative easing measures during the financial crisis. Instead, market participants were pleased that the central bank kept interest rates stable for now, and they were largely happy with the way that earnings season has gone so far.
However, a few stocks haven't been able to follow the major benchmarks higher, and Akamai Technologies (NASDAQ: AKAM), Corning (NYSE: GLW), and Wynn Resorts (NASDAQ: WYNN) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Akamai Technologies dropped almost 15% despite the company reporting good financial results in its second-quarter report. The cloud delivery platform specialist said that revenue rose 6% from the year-ago period, driven by larger gains in the web division and enterprise and carrier business. The company's international business posted most of the company's growth, and Akamai pointed to big gains in cloud security solutions as a key component of its overall gains. Yet investors weren't entirely comfortable with Akamai's projections for sluggish revenue growth in the current third quarter, and they also looked at relatively poor performance from Akamai's media delivery business as a reason for concern. If Akamai can successfully adapt to changing conditions and find avenues for growth, then today's share-price losses should prove to be temporary.
Source: Fool.com