Portfolio Management 101
Mar. 7, 2014, 4:06 PM
- DuPont Fabros (DFT -5.5%) discloses Yahoo (YHOO -2.4%) plans to sub-lease premises it directly leases at two DuPont data center facilities in Ashburn, VA. DuPont says the leases "represent 11% of the Company's operating property portfolio."
- Other data center owners have also sold off: DLR -3.7%. COR -2.3%. CONE -1.7%.
- Yahoo directly owns four data centers - they're in New York, Washington state, Nebraska, and Singapore. The company announced last October it's investing $170M to expand its New York facility.
- While Internet giants and cloud service providers remain among the top clients of independent data center owners, they've also been making huge investments in custom, energy-efficient data centers of their own.
Dec. 3, 2013, 12:01 PM
- Data center owners Digital Realty (DLR -4.2%), CoreSite (COR -4%), and (to a lesser extent) DuPont Fabros (DFT -1.1%) have joined Rackspace, Amazon, and Equnix (previous) in selling off after Google officially launched its Compute Engine cloud infrastructure (IaaS) platform (the service was in beta until now), and simultaneously unveiled new features and major price cuts.
- While data center colocation services firms don't directly compete with IaaS providers, they're indirectly affected to the extent customers migrate workloads away from their own servers (hosted within colocation facilities) to IaaS platforms that often leverage data centers built by the service providers themselves.
- However, colocation providers do offer connectivity services for linking client servers with IaaS platforms such as Amazon Web Services.
- Synergy Research recently estimated the traditional Web hosting market only grew 3% Y/Y in Q3, while the IaaS and cloud app platform (PaaS) markets collectively grew 46%.
May 9, 2013, 12:45 PMFour downgrades are levied on Rackspace (RAX -26.3%) following yesterday's Q1 revenue miss, accompanied by worrying business metrics. Slowing growth and a slumping EBITDA margin (due to price cuts) are problems that will get worse as Microsoft and Google ramp their cloud offerings, argues CLSA, which has cut shares to Sell. The firm adds checks indicate "mid-tier to large firms" are increasingly migrating from hosting to cloud services, and expects OpenStack to be immaterial to RAX's bottom line for the next 1-2 years. Stephens, making a contrarian upgrade to Overweight, thinks "new contract wins are on the horizon," as Rackspace targets enterprises. EQIX -2.2%. COR -4.2%. INXN -3.3%. VMW -2.5%. (transcript) | May 9, 2013, 12:45 PM | 1 Comment
May 6, 2013, 10:04 AM
3D Systems (DDD +6.5%) jumps on news it's getting added to the S&P MidCap 400 Index following Wednesday's close. The 3D printer maker is replacing Macerich (MAC +1%), which is replacing Coventry Health (set to be acquired by Aetna) in the S&P 500. 3D will be replaced in the S&P SmallCap 600 by CoreSite Realty (COR +4.8%).| May 6, 2013, 10:04 AM | 5 Comments