* Analysts expected higher outlook
* Shares fall almost 4 pct
* Company expects aggressive pricing pressure
(Updates with share move, details on business)
NEW YORK, Dec 9 Akamai Technologies Inc
(AKAM.O) disappointed investors hoping that the Internet
content delivery company would raise its quarterly outlook,
keeping forecasts unchanged while warning that pricing would
Akamai's shares dropped 3.7 percent to $52.10 after the
company outlined its long-term strategy at an investors'
conference but said it was not updating its forecasts.
Some analysts say a stronger outlook for the quarter and
2011 would be crucial for the shares to hold onto their recent
momentum and high valuation. The shares, as of Wednesday, were
trading at around 33 times expected earnings, according to
StarMine data, above the industry's median multiple of 22.8.
Analysts on average had forecast fourth-quarter revenue of
around $283 million, according to Thomson Reuters I/B/E/S,
above the midpoint of the company's previously stated outlook
of $272 million to $285 million.
Akamai supports the delivery of content like music and
video over the Internet by navigating less-congested network
routes. It also helps with online shopping sites, and the
company is usually paid based on how much traffic it handles.
It told investors that the company expects pricing to fall
"aggressively" ahead, confirming investors' fears that
competition was intensifying.
But the company also said an increase in traffic would make
up for the fall in pricing, and forecast annual revenue to
eventually rise to $5 billion. It did not give a timeframe.
The company's shares slid last month on news it was
renegotiating its contract with Netflix Inc (NFLX.O),
jeopardizing its role as the movie rental company's top vendor.
Netflix has brought on board rival Level 3 Communications Inc
LVLT.O as one of its primary vendors.
(Reporting by Ritsuko Ando, editing by Maureen Bavdek and
Gerald E. McCormick)