The wheels have started to come off the internet infrastructure stock party. Booming web traffic during the economic lockdown in the spring has started to moderate, and the first hyper-growth stock to be tamed was Fastly (NYSE: FSLY) . Next up was Limelight Networks (NASDAQ: LLNW) , which just endured a nearly 40% drubbing after posting third-quarter 2020 results mostly in line with its own expectations.
This is a small position for me, but I remain unfazed by the market's reaction and plan on adding a small amount more.
Limelight reported revenue of $59.2 million during the third quarter, up 15% from last year and in line with its updated guidance provided a few months earlier. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) was $5.6 million, down 4% from last year. It was on the thin side of management's profit outlay, but it was nonetheless enough to keep Limelight on track for its full-year targets (revenue up 17% from 2019 at the midpoint of $230 million to $240 million, adjusted EBITDA up 74% from 2019 at the midpoint of $28 million to $35 million).
For further details see:
Why I Remain Unfazed After Limelight Networks' Epic Stock Price Drop