Limelight Networks (LLNW)
Limelight Networks (NASDAQ:LLNW) has executed a nice turnaround of late — and LLNW stock has responded in kind. The internet content delivery provider is a small fish compared to industry leader Akamai Technologies (NASDAQ:AKAM), but it’s making progress. Revenue is expected to rise 6% this year and 11% the next, with earnings growing at a long-term rate of 15%.
LLNW looks rather expensive on a P/E basis, but margins are thin and EV/EBITDA multiples are favorable. With a recent pullback to $3, a continuation of the recent trend should drive upside in the stock.
With Akamai rebounding amid easing of some industry-wide concerns — notably customers like Netflix (NASDAQ:NFLX) and Facebook (NASDAQ:FB) choosing DIY options — Limelight is positioned to keep double-digit revenue growth intact. That will boost margins and profits — and likely get LLNW out of the penny stock category altogether.
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