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.
[related_stories]For instance, Akamai makes up 3.2% of the First Trust NASDAQ CEA Cybersecurity ETF (NasdaqGM: CIBR), which rose 1.2% on Tuesday. CIBR includes companies involved in the building, implementation, and management of security protocols applied to private and public networks, computers, and mobile devices in order to provide protection of the integrity of data and network operations.
SEE MORE: Cybersecurity ETFs Strengthen as Twitter, Spotify, Netflix, Amazon Suffer Attacks
Cybersecurity ETFs capitalized on the internet’s woes last week after traders looked to companies that could help counter future attacks on big online names. Two successive attacks blocked multiple major websites early Friday, cutting off access to large internet services, like Twitter (NasdaqGS: TWTR), Spotify, Netflix (NasdaqGS: NFLX), Amazon (NasdaqGS: AMZN), Tumblr and Reddit.
The First Trust ISE Cloud Computing Index Fund (NasdaqGM: SKYY) includes a 4.1% tilt toward AKAM and gained 0.8% Tuesday. SKYY follows the ISE Cloud Computing Index, which tracks the performance of companies actively involved in the cloud computing industry or engaged in a business activity supporting or utilizing the cloud computing space.
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First Trust NASDAQ CEA Cybersecurity ETF