Limelight Stock Story

LLNW -  USA Stock  

USD 2.90  0.07  2.36%

Limelight Networks EBITDA Margin is fairly stable at the moment as compared to the past year. Limelight Networks reported EBITDA Margin of 0.037 in 2020. Enterprise Value over EBITDA is likely to climb to 67.44 in 2021, whereas Revenue Per Employee is likely to drop slightly above 337.3 K in 2021. This short post will focus on Limelight Networks as a possible investment alternative for your portfolios. We will provide a perspective on Limelight Networks future direction.
Published over a month ago
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What can we learn from Limelight Networks (NASDAQ:LLNW) latest price fluctuation
Limelight Networks has a beta of 0.621. Let's try to break down what Limelight's beta means in this case. As returns on the market increase, Limelight Networks returns are expected to increase less than the market. However, during the bear market, the loss on holding Limelight Networks will be expected to be smaller as well. The beta indicator helps investors understand whether Limelight Networks moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Limelight deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Limelight Networks. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Limelight Networks

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Limelight Networks' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Limelight Networks in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Limelight Networks. Your research has to be compared to or analyzed against Limelight Networks' peers to derive any actionable benefits. When done correctly, Limelight Networks' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Limelight Networks.

How important is Limelight Networks's Liquidity

Limelight Networks financial leverage refers to using borrowed capital as a funding source to finance Limelight Networks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Limelight Networks financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Limelight Networks's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Limelight Networks, but it might be worth checking our own buy vs. sell analysis

Breaking it down a bit more

Limelight Networks exhibits very low volatility with skewness of 0.47 and kurtosis of 0.67. However, we advise investors to further study Limelight Networks technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Limelight Networks' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Limelight Networks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Returns Breakdown

Return on Investment(7.02)
Return on Assets(0.0777)
Return on Equity(0.12)
Return Capital(0.0874)
Return on Sales(0.0691)

Will Limelight Networks latest climb continue?

The standard deviation is down to 2.63 as of today. Limelight Networks exhibits very low volatility with skewness of 0.47 and kurtosis of 0.67. However, we advise investors to further study Limelight Networks technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Limelight Networks' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Limelight Networks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Limelight Networks

While other entities under the software—infrastructure industry are still a bit expensive, Limelight Networks may offer a potential longer-term growth to sophisticated investors. To conclude, as of the 15th of October 2021, we believe that at this point, Limelight Networks is relatively risky with above average probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our ongoing 90 days buy-hold-sell recommendation on the venture is Strong Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Limelight Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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