Adam Gefvert, CFA
Long/short equity, short only, growth, special situations

Limelight Networks Is In Terminal Decline, $1.50 Price Target

Limelight Networks (NASDAQ:LLNW) is a content delivery network (CDN) that has been consistently delivering below average performance for customers. With a poor management team, all evidence points to a continual loss of market share to its competent competitors. In 2012, Limelight was the #2 revenue-generating CDN after Akamai (NASDAQ:AKAM). Last year, Level 3 (NASDAQ:LVLT) surpassed Limelight as the #2 CDN. Right now, Limelight is ranked #4, and will likely be #5 by the end of the year after Akamai, Amazon (NASDAQ:AMZN), Level 3, and EdgeCast/Verizon. Today, there is no reason for new customers to choose Limelight over those other four top-notch CDN performers.

The mechanics of a CDN operator is it gets...

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