Internap Network Services (INAP) downgraded to Perform from Outperform at Oppenheimer. Accelerating price declines in IP and deteriorating CDN environment hurt revenues and margins. See no near-term catalysts.

Valuation

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NBC chose upstart Pando Networks over more established content delivery players to serve up hits like 'The Office' to Internet viewers. Robert Levitan, CEO of start-up Pando Networks, says it's only the beginning.

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Fear of the overall market is what drove the price of INAP down, not the last earnings conference call. Regardless of the recent price drop to the $6.50-ish range, this won't change the very bright future InterNAP is STILL heading toward:

The fact is InterNAP is continuing to grow at a rate of 25% per year, they are increasing margins, and the company is just now becoming profitable.

The company has, as CEO James Deblasio mentioned on January 14, 2008, the "cleanest balance sheet in the industry", clean AR, growing margins, growing top line rev (25%), growing cash flow (20% of revs), and growing Colo expansion rent ($65 - $70 per sq foot).

INAP is up 24% in the last five days.

We're looking at a current price of $8.06, up from $6.50 just five business days ago. This upward trend, I think, is not even close to being over with.

Moreover, in the last five trading days there have been two analyst upgrades:

WACHOVIA UPS INAP TO OUTPERFORM FROM MARKET PERFORM (Friday, Jan. 11, 11:10AM EST) -- Sets $10-$13valuation

Internap Started At Outperform By Oppenheimer >INAPLast update: 1/14/2008 2:43:22 PM(MORE TO FOLLOW) Dow Jones NewswiresJanuary 14, 2008 14:43 ET (19:43 GMT)

Worst case scenario -- INAP goes back up to $10-13 in the next few months.
Best case scenario -- INAP reaches $20 in the next couple of years.

Morris says Integral's approach to the new year is "not to get too far out in front of ourselves," to stay wary of the macro factors early, but to look for stocks that "people have thrown away or ignored." He offers examples: Web-hosting company Internap Network Services (INAP); Sonus Networks (SONS)

IP CONTENT DELIVERY

growth

From Barron's 7-30-07:

"Internap (INAP) is slated to announce earnings Tuesday, and based on its recent turnaround and penchant for raising targets under new management, it wouldn't be a stretch to see the company cast a rosier outlook for the second half of 2007. That could lift the stock, which, at 13 and change, is down from around 20 early this year.

"We're really moving in the right direction," says CEO Jim DeBlasio, who came off then-struggling Internap's board in November 2005 to become CEO."

because akam is too much

Upgraded by CIBC from Sector Perform to Sector Outperform

I'm not sure,