Akamai Gains On 'Distributed Edge'

Morgan Stanley Dean Witter & Co. analyst Todd Scott initiated coverage of Akamai Technologies with an "equal-weight-V" rating, pointing to the company's move to higher-margin distributed-edge computing and its low cash-burn rate. Scott praised Akamai's move to distributed-edge computing, which moves content and application processing to the edge of the network where Web sites can be dynamically assembled, rather than processed behind the computer's firewall. Although Scott sees great promise in that market, he noted that it was unlikely to impact cash flow and revenue until next year. Akamai stock closed at $2.32 on May 15, up 19 cents.