It can be difficult to predict where penny stocks will move; sudden changes are what these stocks are all about. Today, we’re looking at one penny stock that could hold the secret to capitalizing on the battle for streaming service supremacy: Limelight Networks.
Limelight Networks Inc (NYSE:LLNW)
November saw the battle for streaming superiority kicked into top gear with the launch of Disney+ and AppleTV+ as two major competitors to Netflix (NASDAQ:NFLX). Regardless of which service comes out on top in the long run, there’s no doubt that streaming has now become the dominant medium for entertainment delivery, and that’s what makes Limelight Networks such a good penny stock bet. Limelight currently operates one of the largest content delivery networks in the world, which enables streaming companies to provide the highest-quality streaming experience.
>> VRAY Stock Rockets on a Major Collaboration with Elekta
Limelight’s list of former and current clients reads like a namedropper’s delight and includes the likes of Microsoft (NASDAQ:MSFT), HBO, Amazon (NASDAQ:AMZN), Disney (NYSE:DIS), and Apple (NASDAQ:AAPL). Pretty impressive for a company still considered a penny stock.
The company is also investing heavily in cloud technology, with management recently telling analysts, “Limelight is rapidly preparing for the next evolution in cloud storage technology to handle online streaming growth. The immediate opportunity is significant, with edge cloud accounting for $7.7 billion in 2018 and increasing to $16.6 billion in 2022.”
Limelight Networks’ recent financials have been hampered by that costly transition to cloud computing, but its most recent earnings report posted the second-highest revenue in the company’s history, while quarterly traffic hit a record high and EPS looks set to climb by 500% next year. This penny stock is currently trading for $4.20 and looks set for what could be a big year ahead.
What do you think?
Featured Image: DepositPhotos © K.Klimenko
