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Limelight Networks, Inc. (LLNW) Message Board

  • jaytiggs21 jaytiggs21 Aug 1, 2007 1:08 PM Flag

    LLNW and AKAM industry view

    I don't normally post but thought I would in this case in order to shed some light on AKAM and LLNW from an industry perspective.

    First, my disclosure: Bought AKAM at $33 and LLNW at $20.

    Over the past 10 years I have worked with leading telecom and internet companies, and startups providing strategy and solutions consulting.

    The Case for AKAM:

    Undisputed king of web 1.0 content; text, graphics, low intensity applications. Invested HEAVILY to become dominate in Web 2.0+, digital video, application platforms, etc.

    The client list is top notch and cross industry. I think this is being overlooked and is a huge advantange. A perceived threat to AKAM is that their internet clients (apple, yahoo) may take their CDN in house. Let's say this happens (which I can tell you at least Yahoo won't and I very much doubt Apple would invest the $$ required at the expense of developing and marketing products to stay at the forefront of innovation). You think IBM, Airbus, BMW, etc. want to be responsible for content delivery?

    AKAM in not a one trick pony, also sell many products that enable companies to accelerate solution delivery, increase performance, and scale effectively.

    Here's a good review of the strength of AKAM:
    http://biz.yahoo.com/seekingalpha/070730...

    Case for LLNW:

    Limelight is new and well funded. Limelight's strength is that they are structured for Web 2.0+. Digital media delivery, application platforms, etc. They also have great margins, do to a more centralized delivery structure.

    The client list is impressive: Microsoft (both company and XBOX live), MSNBC, Dreamworks, Brightcove, Facebook.

    MS is aggressively moving into gaming and promoting XBOX live at the premier online gaming platform. Growth is great for LLNW. Dreamworks moving to digital supply chain bodes well for LLNW as well.

    But the greatest case for LLNW is that of Facebook. Facebook is growing at a rapid pace, but its not just a socail network. For those that don't know, Facebook opened up their platform for developers, and in the last 4 months thousands of applications have launched on the 'Facebook platform'. What this means is that developers and startup companies are launching applications of Facebook infrastructure and integrated into Facebook to target community users. Content and user numbers are exploding - to the great benefit of LLNW.

    The Facebook move was not earlier percieved and so I suggest getting in on LLNW before earnings on Aug 9th. Based on Facebook alone they will be huge.


    The legal battle:

    The legal battle between the two is unfortunate. As a recent ruling suggested, there may be a better conclusion here for LLNW than what is being portrayed in the media - http://www.lightreading.com/document.asp...

    I don't think a ruling in LLNW's favor will have a drastic effect of AKAM's stock price, but a ruling against LLNW could do damage to the LLNW share price. With AKAM having heavily invested in building out its next generation network a buyout of limelight doesn't appear to be likely.

    The web is only getting bigger and spreading farther. Media companies and studios are looking at implemting digital supply chains, mobile content is growth business, online gaming is exploding.... these are all in developed markets.

    In India and China, web proliferation is rampant as the middle class grows. LLNW has opened a Japan unit to serve this. AKAM is already around the world.

    The reailty is that Web 2.0 is here and Web 3.0; which I term the 'application web' has started and is set to explode.

    The market is horrible right now. But the internet is alive and thriving which equals great buying opportunities on AKAM and LLNW. Buy,Hold and prosper.

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LLNW
2.29-0.03(-1.29%)Oct 21 4:00 PMEDT

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