Last Updated: 19 Sep 2024
Executive Summary
Edgio Inc. (EGIO) is a provider of content delivery network and related services. The company's financial performance has been challenged in recent quarters, with negative earnings and declining revenue growth. However, analysts maintain a generally positive outlook on the stock, with a target price of $30 and a forward PE ratio of 59.88.
Company Overview
Edgio Inc. was founded in 2018 and is headquartered in Tempe, Arizona. The company provides content delivery services to customers in the Americas, Europe, the Middle East, Africa, and Asia Pacific. Edgio's services include web acceleration, video streaming, and cloud security.
Fundamental Analysis
Revenue: Edgio's revenue for the latest twelve months (TTM) was $403.59 million, a decline of 0.124% year-over-year.
Earnings: The company reported a net loss of -$74.24 million for the TTM period, resulting in a diluted EPS of -$26.
Profitability: Edgio's profit margins are negative, with a gross profit margin of -0.351% and an operating margin of -0.235%.
Valuation: The company has a market capitalization of $6.49 billion. Its price-to-sales ratio is 0.0161, and its price-to-book ratio is 0.013.
Technical Analysis
Trend: EGIO's stock price has been in a downtrend since its all-time high in March 2021.
Support and Resistance: The stock has found support at around $8.21, the 50-day moving average. Resistance is encountered at around $9.95, the 200-day moving average.
Momentum: The stock's momentum indicators are currently neutral.
Short Term Outlook
In the short term, EGIO's stock price is likely to remain range-bound between $8.21 and $9.95. The company's negative earnings and declining revenue growth could weigh on the stock price. However, the analyst target price of $30 suggests that there is potential for upside in the long term.
Long Term Outlook
Analysts are generally positive on Edgio's long-term prospects. The company operates in a growing market, and its services are essential for businesses that rely on online content delivery. However, the company faces competition from larger players in the industry, and its profitability needs to improve.
Analyst Recommendations
Two analysts have issued hold ratings on Edgio Inc. There are currently no strong buy, buy, sell, or strong sell ratings on the stock.
