Investing: Data Center Stocks Soar

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The second quarter of 2009 saw exceptional returns for leading public companies in the data center sector, as virtually the entire industry outperformed the major indices and several players posted triple-digit gains.  

The biggest gains for the quarter ending June 30 were seen in the shares that were battered in recent quarters, including Navisite (+242 percent), Terremark Worldwide (+115 percent), and Savvis and Rackspace (each up 85 percent). By way of comparison, the  Dow Jones Industrials gained 11 percent in the second quarter, the best showing for the bellwether index since 2003.

dcstox-2q-2009

The sector’s strong results hold up when we look at the first half of 2009.

Once again, the stocks rebounding off their lows have impressive short-term gains, with data center REIT DuPont Fabros Technology (DFT) leading the pack with a six-month gain og 355 percent, while Navisite (NAVI) and Rackspace (RAX) also had triple-digit gains. The entire sector is solidly in the black for the first half, while the Dow was down 3.8 percent.  Here’s our performance chart for the first six months of 2009:

dcstox-1h-2009

Remember to track our Data Center Investor channel for performance updates on data center companies. For tracking individual stocks, you can use the “Companies” link in our navigation bar, or just type the company’s ticker symbol into our search box.

About the Author

Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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