Is Edgio a viable investment option? Its share price has fallen from grace, but the launch of its Advanced Bot Management solution could provide a chance to regain its footing. Nevertheless, with a class-action lawsuit underway, EGIO stock faces considerable risk.
Who is Edgio Inc (NASDAQ: EGIO)?
Edgio Inc (NASDAQ: EGIO), formerly known as Limelight Networks, Inc, provides software solutions and services for digital content delivery, cloud security, edge computing, and more.
Edgio is a platform that helps companies deliver faster, safer, and more controlled online experiences and content. Its globally scaled edge network and fully integrated application and media solutions provide a single platform for delivering high-performing, secure web properties and streaming content. By using this platform, companies can boost their revenue and business value by delivering content quicker and more securely.
Advanced Bot Management solution
Edgio has announced the availability of its Advanced Bot Management solution, which proactively mitigates evolving malicious bots and provides observability into good bots.
The solution uses machine learning to detect bots based on both signature and behavioral fingerprinting and runs natively on every server across the entire Edgio global network to inspect all traffic for bots in real time. This eliminates the need for code changes, SDK integrations, or JavaScript injections that add complexity and impact user experience. The solution is infrastructure and network agnostic and protects both web and mobile apps as well as API endpoints against all bot attacks.
Advanced Bot Management is an integral component of Edgio's multi-layered security portfolio, which includes Web Application & API Protection (WAAP), DDoS Protection, Origin Shield, Authoritative DNS, and TLS Encryption for comprehensive web security.
Award Winner
Edgio has won the "Hot Company" award for Web Application Security at the 11th Annual Global InfoSec Awards held at RSA Conference 2023. This award was given by Cyber Defense Magazine, a leading electronic information security magazine.
Edgio provides a complete Web Application and API Protection solution to shield businesses from the latest threats without sacrificing performance. The company's advanced bot solution helps to protect web properties and APIs from automated threats, including account takeovers, web scraping, and credit card stuffing attacks.
Edgio is supported by one of the world's largest edge networks, providing organizations with the capacity to absorb even the largest DDoS attacks and safeguard their digital properties.
Legal Wrangling
A class action lawsuit has been filed against Edgio Inc on behalf of all individuals and entities who purchased or acquired its stock between May 11, 2021, and March 12, 2023.
The complaint alleges that the company did not disclose to investors certain weaknesses in its internal controls over financial reporting related to Open Edge transactions, resulting in an overstatement of its revenue during certain periods.
On March 13, 2023, Edgio announced that it would need to restate its financial statements for the years 2020 and 2021, as well as its quarterly reports for 2021 and 2022, due to errors in accounting treatment for the Open Edge solution. As a result, the company's share price fell by 15.5% on the same day.
EGIO Stock Fundamentals
As of April 26th, 2023, Edgio (EGIO-US) ended the day at USD 0.62, experiencing an -86.2% decrease from its 52-week high. This contrasts with the subsector average change of -29.4%.
The company's stock is trading at $0.62 as of 27 Apr 2023 and is down by 45% year-to-date (YTD). On an annual basis, the stock is down by -86% whilst the S&P 500 is down by -3%, which means the stock has performed worse than the broader market by approximately -83% over this period.
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