Shares of Limelight Networks (NASDAQ:LLNW) were climbing today following an analyst upgrade for the company's stock. It was up as much as 17%, and as of 3:37 p.m EDT on Monday had gained 15.3%.
Raymond James upgraded the content delivery network specialist from a market perform rating to outperform and set a $6 price target for the stock today. Investors jumped on the upgrade and quickly pushed the company's share price up throughout the trading day.
Today's share price pop moved the stock out of negative territory over the past three months to a current gain of 8.5%. Those gains have barely outpaced the S&P 500's gains of 8.3% over the same period.
Investors may also be optimistic about Limelight's stock after the U.S. Labor Department said on Friday that 2.5 million jobs were added in May. The surprise addition of jobs to the economy brought unemployment down to 13.3%, from 14.7% in April.
That bit of positive economic news, along with a stock upgrade, provided the perfect recipe for investors to become more optimistic about Limelight today.
Though Limelight's shares took a huge hit in March, along with the rest of the market, the company's stock has performed exceptionally well over the past 12 months, rising 77.2% versus the S&P 500's 12% gains. Today's spike indicates that investors are increasingly optimistic about the company's ability to weather the current economic troubles brought on by COVID-19. But with so much uncertainty remaining for the U.S. economy, they should likely expect more volatility from the market as a whole in the coming months.