A 14% plunge in Akamai Technologies (NasdaqGS: AKAM) on a disappointing outlook from the company weighed on a small exchange traded fund (ETF) that invests in the Internet infrastructure sector.
Akamai represents more than 28% of Internet Infrastructure HOLDRS (AMEX: IIH), which was down nearly 5% in late-morning trade Thursday. Luckily for investors the ETF holds less than $20 million in assets.
“Overall, we view Akamai’s first quarter results as a mixed quarter. We expect concerns around pricing to persist while it appears there is more uncertainty around volume growth, which is leading to lower than expected 2Q guidance,” said Deutsche Bank analysts in a note.
“The company does not provide annual guidance, but seemed to back away from its previously stated objective of at least 15% revenue growth this year,” they wrote.
Internet Infrastructure HOLDRS
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.