Please ensure Javascript is enabled for purposes of website accessibility

Why Limelight Stock Jumped Tuesday

By Daniel Sparks - Updated Jun 23, 2020 at 1:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This edge computing company looks poised to benefit from a surge in streaming during COVID-19.

What happened

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. 

A chart showing a stock price rising

Image source: Getty Images.

So what

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."

Now what

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." 

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Edgio, Inc. Stock Quote
Edgio, Inc.
EGIO
$3.65 (0.14%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
403%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.