Please ensure Javascript is enabled for purposes of website accessibility

Why Limelight Networks Stock Is Soaring Today

By Anders Bylund – Sep 18, 2020 at 1:43PM

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

The content delivery network operator was the subject of a bullish analyst report.

What happened

Shares of Limelight Networks (EGIO 1.41%) are rising today, up 7.5% as of 1:17 p.m. EDT, after investors were quick to embrace a bullish report from analyst firm Truist.

So what

The content delivery network (CDN) specialist got a buy rating and a $9 share price target from Truist analyst Greg Miller. The CDN market is accelerating its growth in 2020 due to coronavirus-boosted interest in media-streaming services, and Limelight is gaining market share at this crucial moment in time. Miller also noted that Limelight should be able to meet its long-term financial targets of 15% annual revenue growth and 25% EBITDA margins thanks to the beneficial effects of COVID-19 lockdown policies.

A smiling young man and woman cuddle up on the TV couch.

Image source: Getty Images.

Now what

Limelight's stock has nearly doubled over the last 52 weeks, posting an 91% one-year return and a 54% gain in 2020.The company is climbing closer to sustainable bottom-line profits with every quarterly report and the CDN service offers some features that larger sector rival Akamai Technologies can't match yet, such as edge computing functions and a tight focus on the promising digital media market. In that light, Miller's analysis looks correct and today's market reaction makes sense.

Anders Bylund 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.
$1.44 (1.41%) $0.02
Akamai Technologies Stock Quote
Akamai Technologies
$91.03 (-0.57%) $0.52

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

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.