Shares of content delivery network company Limelight Networks (EGIO 0.14%) surged on Tuesday, rising as much as 20.9%. As of 12:30 p.m. EDT, however, the stock was up 15.5%.
The tech stock's big gain follows a press release from the company on Tuesday morning that said streaming has surged during COVID-19.
According to the company's survey of 5,000 consumers across a handful of countries, Limelight found that video streaming across news, entertainment, exercise, and other categories has risen sharply as consumers are sheltering at home.
"Many people turned to online video to connect with others and maintain daily activities during the pandemic, but it won't stop once quarantine is over," Mike Milligan, Limelight's senior director of product and solution marketing, said in a press release. "Our report emphasizes that online video will remain an important part of our lives in the new normal."
As a provider of content delivery, video, and edge computing services that enable digital experiences, Limelight is poised to benefit from consumers' shift to more streaming. Indeed, management said in its April 23 first-quarter earnings release that there was "momentum going into the second quarter, primarily driven by the increase of video on demand."