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Edgio - AI Stock Analysis
Analysis generated July 22, 2024
Edgio is a leading company in the cloud and edge computing space, providing services that leverage the latest technologies in these domains. With a strong emphasis on performance, scalability, and security, Edgio enables businesses to optimize their digital presence and deliver robust online experiences. Given the rapid growth in digital transformation and cloud adoption globally, Edgio is well-positioned to capitalize on these trends.
Fundamental Analysis
Analyzing Edgio's revenue for the last quarter reveals a total of $97 million. While this represents a 1.33% increase compared to the prior quarter, it is a 12.45% decrease from the same quarter last year, signaling potential challenges. However, the net income of $24 million for the last quarter grew by 31.31% quarter-over-quarter and an impressive 50.14% year-over-year, highlighting significant profitability improvements.
Furthermore, the EBITDA for the last quarter was $20 million, marking a 27.28% increase from the previous quarter and a 55.30% rise year-over-year. This robust EBITDA growth indicates strong operational performance and effective cost management.
Technical Analysis
Edgio’s stock price is currently traded at $10.88, reflecting a 7.94% increase over the last month, which is a positive short-term indicator. However, the stock has declined by 64.76% over the past year, which raises concerns about long-term performance. The trend is notably bearish.
The SMA10 (Simple Moving Average) is 11.22 compared to a previous SMA10 of 11.24, suggesting a potential downward trend, albeit marginal. The Relative Strength Index (RSI) is 62.7, which places the stock in a neutral condition. Traders typically look for RSI extremes to indicate potential turning points.
Alternative Data Analysis
Examining alternative data provides further insight into Edgio's growth prospects and market interest. The number of open positions at Edgio has increased by 18%, now totaling 26. An increase in job postings generally indicates expansion and company growth.
In terms of customer acquisition, Edgio’s website has seen an estimated 77,000 visitors, with a 12% increase in the last couple of months. This uptick in web traffic can be indicative of rising interest and potential increases in customer base.
On social media, Edgio's customer engagement shows moderate performance. Their Instagram page has 97 followers with no significant changes recently, while their Twitter following has risen by 25%, now at 640. This increased interest on Twitter could reflect growing market curiosity and engagement.
Edgio’s AI-based predictive score from AltIndex sits at 54, suggesting a "hold" signal. This score aggregates fundamental, technical, and alternative data analyses to provide a holistic view of the stock.
Conclusion
In conclusion, Edgio presents a mixed but cautiously optimistic picture. While short-term revenue growth remains positive, the year-over-year decline needs addressing. Strong gains in net income and EBITDA indicate underlying financial health and effective operational management.
Technically, the stock reflects a bearish trend but with recent signs of stabilization. The alternative data, particularly in job growth and web traffic, hints at potential underlying growth and market interest.
Based on the analysis, Edgio may be a "hold" for current investors looking to see how upcoming quarters perform. Potential investors should closely monitor for improvements in revenue trends and sustained growth in customer acquisition metrics.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
