Tuesday, May 26, 2009

Data Center Stock Market News

Just a couple of items I noticed today in regards to the data center stocks I monitor. First, is an update to the data center stock index I started last year. It has been a roller coaster -- here is the latest graph:



More details on what the index is comprised of can be found here.

The Dow Jones Internet Composite Index has also been graphing quite nicely the last 3 months.

The second story was one I some how missed last week -- Wachovia resumed coverage of the data center space. They immediately rated Equinix and Switch & Data with OUTPERFORM.
"Both companies have high visibility into its revenue base and low churn driven by 1 – 3+ year contracts with escalators. EQIX, SDXC, and other network neutral data centers benefit from a supply demand imbalance due to growth in IP and internet traffic and limited available space close to fiber hubs for telecom equipment and networking gear"
Also late last week submarine transport cable provider Hibernia announced they have expanded into Equinix's LD4 London Slough IBX data center.

Earlier today Datacenterknowledge reported on VMWare taking a 5% stake in Terremark. In terms of institutional ownership, that puts them in 2nd place, behind Ashford Capital Management, who has a 7.98% stake. I thought the comment on the BusinessWeek investing site was interesting:
"There is significant interest in TMRK by institutional investors. The 29.13% of the shares outstanding that they control represents a greater percentage of ownership than at almost any other company in the Specialty Telecommunications industry."

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