LLNW stock attracted buyers on June 23, 2020, after the company reported a surge in streaming video during the COVID-19 pandemic.
The COVID-19 pandemic is impacting lives across the globe, forcing people to change how they work, learn, access information, connect with one another and their entertainment options. Streaming is at the forefront of this new normal with global consumers now engaging with online video for an average of four hours and three minutes every day. That is according to a new global “How Video is Changing the World” report from Limelight Networks, Inc., (Nasdaq: LLNW), which exposes the new ways online video supports our daily activities during and after the pandemic.
As people quarantine in their homes, online video is enabling new forms of interactive entertainment to pass the time. With traditional sports leagues on hold, nearly one third (31 percent) of global consumers have had their first esports experience during the pandemic. With other live events cancelled, almost half (44 percent) of global consumers attended their first virtual concert. Exercising is also going virtual as athletic facilities remain closed. In fact, 31 percent have participated in an online fitness class and another 24 percent plan to in the next six months.
Additional insights from the report include:
- Online video fills the void of in-person social interactions. Globally, nine in ten (89 percent) people now use video chat to feel more connected, up from 61 percent prior to COVID-19.
- Consumers are using online video to access critical information. Most people (70 percent) have used online video to stay informed by watching live stream speeches and press conferences during the pandemic – 44 percent live streamed on news sites and 26 percent live streamed on social media. Even Baby Boomers (63 percent) tune into live streamed news and information online.
- Remote work and professional development rely on online video. As the pandemic has forced consumers to work remotely, 79 percent of people agree that online video equips them to maintain daily activities. One third (33 percent) of global consumers are working from home for the first time and say online video helps them stay connected to colleagues (24 percent) and work more efficiently (36 percent). More than half (58 percent) have or plan to use online video for professional development or to learn a new skill. Most people (83 percent) believe video-based learning will continue in the post-COVID world.
- The pandemic has sparked a rapid increase in telehealth across the globe. More than one fifth (22 percent) of people have recently met with their doctor virtually. This trend is expected to last beyond the pandemic with another quarter (27 percent) of global respondents planning to hold telehealth appointments in the next six months. Telehealth usage is highest for India where 81 percent of consumers have met or plan to meet with their doctor virtually.
“The pandemic has pushed the bounds of online video. Applications such as remote collaboration, e-learning and telehealth, have been widely available for some time now; but today, they’re essential to continuing life in quarantine,” said Mike Milligan, senior director of product and solution marketing at Limelight Networks. “Many people turned to online video to connect with others and maintain daily activities during the pandemic, but it won’t stop once quarantine is over. Our report emphasizes that online video will remain an important part of our lives in the new normal.”
On June 22, 2020, Lake Street analyst Eric Martinuzzi initiated coverage of Limelight Networks with a Buy rating and $8 price target. The company has emerged from two years of investment with a “best in class” over-the-top video content delivery network that coincides with a wave of new and planned streaming offerings, said Martinuzzi who believes Limelight is “on the cusp” of years of double-digit growth and margin expansion. He forecasts “a bright future” of new account sign-ups and higher installed base retention as the company turns its competitive advantage into market share gains, the analyst added.