LLNW - Limelight Networks: All About Trust After The Bounce
When I recommended (and bought) shares of content delivery provider Limelight Networks (LLNW) in late December, the thesis was that a 50%+ plunge in LLNW shares was unjustified. Some level of selling did seem logical, admittedly. Small-cap tech looked overvalued (at least anecdotally), with LLNW itself trading at a 12x+ EV/EBITDA multiple for much of the year. And a guidance cut in a mid-December update raised questions about both management and the mid-/long-term growth outlook.
But down by more than half, LLNW looked too cheap. The cyclical fears driving the broad market