Stock Price Trends

Akamai Technologies Inc (AKAM)

Akamai Technologies, Inc. is a global content delivery network (CDN), cybersecurity, and cloud service company, providing web and Internet security services.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 47.27% per annum.
  • AKAM price at the close of July 25, 2024 was $96.37 and was higher than the top border of the primary price channel by $3.90 (4.21%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 146.18% per annum.
  • AKAM price at the close of July 25, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of AKAM price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: December 14, 2023
End date: July 9, 2024

a = 7.6510

b = -0.0018

s = 0.0386

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0018) – 1
= -47.27%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0386) – 1
= 16.70%

December 14, 2023 calculations

Top border of price channel:

Exp(Y1,105)
= Exp(a + b × X1,105 + 2 × s)
= Exp(a + b × 1,602 + 2 × s)
= Exp(7.6510 + -0.0018 × 1,602 + 2 × 0.0386)
= Exp(4.9196)
= $136.95

Bottom border of price channel:

Exp(Y1,105)
= Exp(a + b × X1,105 – 2 × s)
= Exp(a + b × 1,602 – 2 × s)
= Exp(7.6510 + -0.0018 × 1,602 – 2 × 0.0386)
= Exp(4.7652)
= $117.36

July 9, 2024 calculations

Top border of price channel:

Exp(Y1,245)
= Exp(a + b × X1,245 + 2 × s)
= Exp(a + b × 1,810 + 2 × s)
= Exp(7.6510 + -0.0018 × 1,810 + 2 × 0.0386)
= Exp(4.5550)
= $95.11

Bottom border of price channel:

Exp(Y1,245)
= Exp(a + b × X1,245 – 2 × s)
= Exp(a + b × 1,810 – 2 × s)
= Exp(7.6510 + -0.0018 × 1,810 – 2 × 0.0386)
= Exp(4.4006)
= $81.50

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 47.27% per annum.
  • AKAM price at the close of July 25, 2024 was $96.37 and was higher than the top border of the primary price channel by $3.90 (4.21%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: June 12, 2024
End date: July 25, 2024

a = 0.0665

b = 0.0025

s = 0.0135

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0025) – 1
= 146.18%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0135) – 1
= 5.53%

June 12, 2024 calculations

Top border of price channel:

Exp(Y1,228)
= Exp(a + b × X1,228 + 2 × s)
= Exp(a + b × 1,783 + 2 × s)
= Exp(0.0665 + 0.0025 × 1,783 + 2 × 0.0135)
= Exp(4.4943)
= $89.50

Bottom border of price channel:

Exp(Y1,228)
= Exp(a + b × X1,228 – 2 × s)
= Exp(a + b × 1,783 – 2 × s)
= Exp(0.0665 + 0.0025 × 1,783 – 2 × 0.0135)
= Exp(4.4405)
= $84.81

July 25, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(0.0665 + 0.0025 × 1,826 + 2 × 0.0135)
= Exp(4.6004)
= $99.53

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(0.0665 + 0.0025 × 1,826 – 2 × 0.0135)
= Exp(4.5466)
= $94.31

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 146.18% per annum.
  • AKAM price at the close of July 25, 2024 was inside the secondary price channel.