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Thursday, August 26, 2010

Buy Akamai Technologies AKAM or Salesforce.com (CRM)??

Hi, I was wondering whether you would buy Salesforce.com (CRM) or Akamai Technologies Inc. (AKAM)?

Thanks for the message, these are two highly traded stocks as of late! Both Salesforce.com & Akamai Technologies Inc. recently hit a 52 week highs after reporting better than expected earnings.

If I had to chose one of these, I would go with Akamai Technologies Inc. (AKAM). Why do I chose Akamai? I view this company as a potential takeover candidate. Big technology companies are having trouble growing and are sitting on piles of cash. In order to grow, we are seeing huge acquisitions. Just look at 3Par Inc (PAR) and the bidding war between Hewlett-Packard Company (HPQ) & Dell Inc. (DELL).

Salesforce.com (CRM) reported a solid quarter but the stock is very expensive. If I see Salesforce.com fall below $90, I may get interested again.

Good Luck!

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