Akamai shares slip on future tax-burden concerns

Shares of Akamai Technologies Inc. were down slightly this morning, as an analyst said the provider of online media technology is likely to face a significant tax burden starting in 2011.

Shares of Cambridge-based Akamai were down 39 cents at $32.48 in morning trading on the Nasdaq Stock Market.

Akamai pays minimal taxes now because of past operating losses and a related deferred tax asset of $349 million.

According to Jefferies & Co. analyst Katherine Egbert, Akamai should move from a cash tax rate of about 2 percent now to a blended rate of 33 percent for federal, state and foreign taxes in 2011. She estimates the increase will reduce Akamai's earnings per share by about 84 cents.

Egbert rates Akamai at "Hold."

Yesterday, Akamai shares rose along with the broader market as a Pacific Crest analyst reiterated an "Outperform" rating, predicting the company will meet or exceed first-quarter profit estimates. (AP)