Akamai Q3 Earnings Beat Lifts Internet ETFs

Internet content delivery network services provider Akamai Technologies (NasdaqGS: AKAM) revealed third quarter revenue and profit results that easily topped expectations, strengthening internet and cyber security exchange traded funds.

Akamai saw revenue of $584 million, a 6% increase over third quarter 2015 revenue of $551 million, supported by strong demand for its cloud security products, according to a statement.

AKAM shares surged 15.0% Wednesday on the strong earnings results.

“Akamai’s strong third quarter revenue and earnings performance was primarily driven by accelerated growth in both our Cloud Security and Web Performance Solutions,” Dr. Tom Leighton, Chief Executive Officer, said. “As the cyber-attacks from last week demonstrate, enterprises need solutions capable of defending against massive botnets that are exploiting millions of online devices. This is an area where Akamai’s unique architecture and ongoing investments in global scale and security innovation continue to make a critical difference.”

Consumers have increasingly adopted cloud computing services to bring everyday digital devices to their fingertips. However, in the digital age, cyber attacks have risen alongside our greater reliance on personal devices, which have given rise to a new breed of companies aimed at countering malicious disruptors.