Limelight (LLNW) Popping on Netflix (NFLX), Bullish Cramer; Revs Expected to Come Back In-Line With Reduced Price Breaks
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Shares of Limelight Networks (Nasdaq: LLNW) are jumping pre-market today, as Jim Cramer recently spoke with CEO Jeff Lunsford, who offered a few bullish remarks about the company.
Limelights core business is delivering content to the Internet, whether it be video, audio, etc. As an example, when Netflix (Nasdaq: NFLX), their largest customer, gets rights to deliver video content, they call upon Limelight to get that content to customers.
Lunsford commented that, although FY09 revs were flat, traffic continued to grow at 129%, as it has over the last five years. Customers asked for a price break in 2009, no doubt tied to the recession, and Limelight granted those price breaks. Lunsford said that revenue was returning now.
When asked about their chief competitor, Akamai (Nasdaq: AKAM), Lunsford noted that customers should have choices available to them. Currently, LLNW is number two behind AKAM, but quality of content may be able to give them even more market share.
Cramer recommends to pick up this stock on any weakness. Shares are currently seeing the strongest run since a block from March to mid-June of 2009. With NFLX share hitting 52-week highs daily, some of that momentum may carry the shares higher. Shares have a long way to go to get back to levels that they started trading at in 2007, namely in the range of the lower-20s.
The stock is up just about 11% ahead of the market today.
Limelights core business is delivering content to the Internet, whether it be video, audio, etc. As an example, when Netflix (Nasdaq: NFLX), their largest customer, gets rights to deliver video content, they call upon Limelight to get that content to customers.
Lunsford commented that, although FY09 revs were flat, traffic continued to grow at 129%, as it has over the last five years. Customers asked for a price break in 2009, no doubt tied to the recession, and Limelight granted those price breaks. Lunsford said that revenue was returning now.
When asked about their chief competitor, Akamai (Nasdaq: AKAM), Lunsford noted that customers should have choices available to them. Currently, LLNW is number two behind AKAM, but quality of content may be able to give them even more market share.
Cramer recommends to pick up this stock on any weakness. Shares are currently seeing the strongest run since a block from March to mid-June of 2009. With NFLX share hitting 52-week highs daily, some of that momentum may carry the shares higher. Shares have a long way to go to get back to levels that they started trading at in 2007, namely in the range of the lower-20s.
The stock is up just about 11% ahead of the market today.
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