Meet on rev, miss on eps...stock goes down. Leads one to think that perhaps profitability and eps growth may be of importance to investors. Yet on the cc the new CEO did not stress the importance of a return to profitability but instead talked about 50 to 100 new sales/r&d employees to be brought on board throughout 2013... Further pressure on eps Llnw needs to do both...grow and drive profits. If the new CEO had articulated that plan yesterday I believe we would be higher today
Hardly went down and on very low volume right after an earnings call. This means that not too many willing to sell at already low prices. It will drift right back to the $2.50 area in a short time. Depending on the direction of the entire market it will either drift back up above $3 or stay in the mid $2 range until next earnings report. A good contract or 2 will drive the price up. Hopefully the new CEO will be more visible and vocal regarding business plan, etc.
They also mentioned at the end that Netflix will be a customer till the end of the year and that negotiations were on going to continue being their CDN as well as Nretflix´s inhouse CDN that they are in the process of building