Tuesday, June 7, 2016

Data Center Stocks Close at Record Highs

By David Gross

Continued strength in bonds and investor giddiness about data centers helped push DLR, DFT, COR, CONE, EQIX, and QTS to record highs today.   Except for EQIX, all were up over 2% today, ahead of the 0.53% gain posted for the NAREIT Composite Index, which covers REITs for all asset categories. Outside the REIT category, INXN also climbed nearly 2% to close at 38.79.


Outside of yesterday's post-close announcement that QTS was buying DFT's NJ1 property for a fairly low $7,000 per available kW, not much news behind today's surge. Still, the combination of possible rate hike delays and Wall Street analysts catching on to a trend long after it's started aren't hurting.  Wells Fargo, for example, initiated DLR last week with an "outperform" rating.   Of course, you can't call your broker and ask to outperform the stock, and even if you could, where was Wells in 2013 when Digital was at 45 yielding 8%?



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