Shares of managed hosting providers led the way as data center stocks once again outperformed the broader market in the third quarter of 2010.
The top gainers were Savvis Communications (SVVS) and Rackspace Hosting (RAX), which each gained more than 40 percent for the quarter ended Sept. 30. Not far behind were Terremark Worldwide (TMRK, up 32 percent) and NaviSite (NAVI, up 27 percent).
What’s sexy about managed hosting providers these days? These companies are at the intersection of the established enterprise hosting business and the emerging cloud computing ecosystem. Given the enterprise focus on security and compliance, managed hosting companies who have spent years securing customer data have clear opportunities as they develop cloud services.
The new entry on the list is CoreSite Realty (COR), which made its IPO last week. CoreSite went public at $16 a share and is up 2 percent thus far. For the moment, it joins its data center REIT brethren Digital Realty Trust (DLR) and DuPont Fabros in the lower tier of our 3Q performance chart. Once COR has had a little more runway, the fourth quarter will provide a better gauge of investor interest.
Here’s a look at the winners and loser in the data center industry in the third quarter of 2010.
By comparison, the Dow Jones Industrial Average was up about 8 percent for the second quarter, while the NASDAQ 100 rose 12 percent.
For the year-to-date, content delivery network Akamai Technologies (AKAM) was the top performer, followed closely by another turnaround story, managed hosting firm NaviSite, as five companies have gains of 50 percent or better for 2010.
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