Why Edgio Stock Plunged Today
Shares of Edgio (NASDAQ: EGIO) took a dive today after the content delivery network that resulted from the merger of Limelight Networks and Yahoo's Edgecast missed estimates on the bottom line and offered weak guidance for the fourth quarter. Driven by the addition of Edgecast, Edgio's revenue jumped 119% to $121.2 million, which was just slightly below estimates at $121.7 million. Management touted momentum across the business, saying that its sales pipeline was up 75% from the beginning of the year, that it nabbed an eight-figure total contract value deal, and that it replaced a major competitor at a top fintech company.