#7 - Edgio (NASDAQ:EGIO)
At this point, we've been focused on streaming providers. However, another way to play this sector involves the companies that operate behind the scene. Edgio (NASDAQ:EGIO) is a good example.
Edgio, formerly known as Limelight Networks, is a content delivery network (CDN) that provides the backend streaming technology used by several of the companies on this list. The company says its products make “connected living faster, safer and simpler to manage by powering unmatched speed, security and simplicity at the edge with our seamlessly integrated delivery, applications and streaming solutions.”
Since these companies will be pumping out more content, not less, the value of EGIO stock will likely increase.
Keep in mind that this small-cap company just posted its first profitable quarter. However, the company’s revenue continues to increase. As of October 3, 2022, analysts surveyed by MarketBeat gave the stock a $4.67 consensus price target, which gives the stock a 64% upside from its current level.
About Edgio
Edgio, Inc provides edge-enabled software solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates private global networks with distributed computing resources and extensive connectivity to last-mile broadband network providers; offers live and on-demand video delivery services; and provides platform, media, and application solutions.
Read More - Current Price
- $0.00
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $10.00
It's understandable if investors think they've missed out on the window for investing in streaming stocks. Perhaps they did on the first wave. But trends like this tend to have multiple growth cycles. Consider that Netflix started as a rent-by-mail business. Or that as recently as a few years ago, Apple and Amazon weren't in the streaming business.
So it's likely that there will be more growth ahead. Streaming providers will get a better sense of what consumers want and how to deliver it in a cost-effective way.
When you look at some of the names in this presentation, it won't surprise you that many of them are established companies that will have the financial resources to be a player in this market, no matter what happens in the economy. We believe that that growth-minded investors should always consider that factor.
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