DataCenterKnowledge has a nice article today summarizing the current market valuations of datacenter-related stocks. It is a shocking table that reminds us just how ugly things are out there. In the financial markets anyway…
With the exception of [company id=”DFT”] which is directly constrained by lack of access to the capital markets, the outlook for the sector remain solid with no slowdown in demand. And yet since October 1, [company id=”DLR”] is off 48%, [company id=”EQIX”] is down 47%, [company id=”SDXC”] is off 57%, [company id=”TMRK”] is off 60%, Rackspace is off 33%. Wow, when the tide went out, it really went out! These companies had good earnings meeting or exceeding expectations, and still their stocks are getting annihilated.
I guess it just demonstrates that if people don’t want to own stocks, it doesn’t matter how well a company performs. They’re still going to sell. The businesses are sound, they will be fine – shareholders however had better hunker down, at this rate it’s going to be a long, cold winter.
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Categories: Datacenter · Financials
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Equinix in particular was way, way overvalued for quite awhile. Before the meltdown its forward P/E was over 100. And they aren’t exactly frugal with employee stock options at Equinix. How come there is no insider buying at these levels?