In its second-largest acquisition, Amazon buys the company for $970 million.
But Akamai has a bad week in the Internet Retailer Online Retail Index.
The bull market on Wall Street was lifting most stocks last week, and e-commerce stocks were no exception.
Eighteen of the 25 stocks tracked by the Internet Retailer Online Retail Index clicked up last week, and the index advanced 1.54%. That put it slightly ahead of the surging broader stock market, as the Dow Jones Industrial Average gained 1.50% last week and the Standard & Poor’s 500 Index advanced by 1.39%.
Leading the way among Online Retail Index stocks was Bidz.com, an online-only jewelry retailer, whose shares advanced more than 10%. Among e-commerce companies that reported financial results last week, eBay was the biggest winner, gaining 7.1%.
But Akamai’s share price declined more than 13% after the company offered guidance for the first quarter of 2011 below analysts’ estimates, a sign some say of growing competition among web content delivery networks. GSI Commerce and Drugstore.com also slumped after they reported their results.
Here are the best-performing stocks last week in the Online Retail Index and the percentage gain in stock price for each:
• Bidz.com, 10.1%
• Shutterfly, 7.8%
• Amazon, 7.6%
• eBay, 7.1%
• Digital River, 5.5%
Here are the Online Retail Index stocks that performed least well last week and the percentage loss in stock price for the week:
• Akamai, -13.5%
• Blue Nile, -8.5%
• LivePerson, -6.4%
• GSI, -5.0%
• Bluefly, -1.9%
The 25 companies in the Internet Retailer Online Retail Index are: 1-800-Flowers.com Inc., Akamai Technologies, Amazon.com Inc., American Greetings Corp., Bidz.com Inc., Blue Nile Inc., Bluefly Inc., DemandTec Inc., Digital River Inc., Drugstore.com Inc., eBay Inc., GSI Commerce Inc., Keynote Systems Inc., LivePerson Inc., Netflix Inc., NutriSystem Inc., Overstock.com Inc., PetMed Express Inc., RealNetworks Inc., Shutterfly Inc., Systemax Inc., U.S. Auto Parts Network, United Online Inc. (owner of FTD.com), ValueClick Inc. and VistaPrint Ltd.