Akamai, Limelight Networks Plunge as Netflix Announces Own Content-Delivery Network

Shares of video content-delivery companies Akamai Technologies AKAM and Limelight Networks LLNW are plunging on Tuesday after Netflix NFLX said that it is building its own content-delivery network for video data. At last check, AKAM shares had lost 6.77% to $26.44 while Limelight Networks LLNW was down almost 14% to $2.33. Analysts at Jefferies were skeptical about the development at NFLX, saying that this isn't the first time that the company has attempted to bring its content-delivery in house. Nevertheless, the firm thinks the migration of traffic away from commercial vendors is a negative development for both companies and could significantly hurt Limelight given its "sizable" exposure to Netflix.