CDNs Weak: Big Band (BBND), Akamai (AKAM), And Level 3 (LVLT)

From analyst Douglas McIntrye: Big Band Networks (BBND) had a bad quarter. The provider of infrastructure for moving video around the internet lost 20% of its value after hours down to $11. It announced a modest $54.5 million in revenue and earnings $.07 a share. An IPO this year, Big Band is now off from a high of $21.63.

Limelight Networks (LLNW), a content delivery network that competes with industry leader Akamai (AKAM), is off from $24.33 just after its IPO to $16.54. Akamai’s stock is down 35% this year. It earnings disappointed investors.

In a related part of the internet infrastructure, Level 3 (LVLT) came up with flat revenue and lackluster earnings for the last quarter. Its shares went from $6.42 to $4.93 after its announcement. It has recovered a bit since then.

But, there is a trend here. The companies that provide the pipes and pipe parts to get video around the internet should be doing very well during the “YouTube” generation. They are not.   Full post at 24/7 Wall St

Note: New York-based CDN Panther Express competes with Akamai and Limelight.  Panther is private, so not clear whether it is seeing the same issues.  (Disclosure: SAI chair Kevin Ryan is CEO of Panther).

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