Limelight Networks Gets A Downgrade (LLNW)


Shares of content delivery firm Limelight Networks (LLNW) are down more than 9% today after Jefferies analyst Katherine Egbert downgraded the stock and cut estimates.

In a note, Egbert says Limelight could be hit harder by content delivery network (CDN) industry pricing wars than bigger rival Akamai Technologies (AKAM). After losing business from Google’s (GOOG) YouTube and News Corp.’s (NWS) MySpace, she thinks Limelight management could guide March-quarter sales below the Street’s $33.2 million consensus. And a patent case with Akamai, which goes to trial on Feb. 11, could send the stock down further.

She also argues that an acquisition by Microsoft (MSFT), rumoured last month, “now seems remote.”

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