Why Edgio Shares Crashed Hard Last Month
Shares of Edgio (NASDAQ: EGIO) fell 46.5% in November 2022, according to data from S&P Global Market Intelligence. The culprit behind this drastic crash isn't hard to spot. The content delivery and edge computing company reported third-quarter results on the evening of Nov. 9. Investors were not impressed, and the stock closed 35.6% lower the next day.
Content delivery expert Limelight Networks merged with Yahoo's Edgecast division on June 16 and renamed itself Edgio. November's third-quarter report was the second business update since that game-changing transaction and the first to cover a full quarter of post-merger results.
Revenues rose 119% year over year, landing at $121 million. On the bottom line, adjusted net losses increased from $0.01 to $0.08 per diluted share. Your average analyst had expected losses of roughly $0.05 per share on sales in the neighborhood of $122 million. Looking ahead, Edgio's management set the midpoint of their fourth-quarter revenue guidance at $111.5 million, far below the $131 million analyst consensus at the time.
Source Fool.com
