Stocks: Rackspace is Top Performer for 2011

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Rackspace Hosting has been pursuing a “best of both worlds” strategy, continuing to generate profits from its successful managed hosting operations while it rapidly builds a footprint in cloud computing. That approach has paid off for stockholders, as Rackspace shares rose 36.9 percent during 2011, making it the best-performing data center stock for the year.

Rackspace (RAX) has been making more money from each square foot of data center space with each successive quarter. in 2011 it continued to add data center capacity to further scale up its revenue. Meanwhile, it sought to leverage ts leadership role in Open Stack, an open source cloud computing platform.

Here’s a look at the full-year 2011 performance for the stocks we track on our Data Center Investor list:

It was a strong year for the wholesale data center sector, as CoreSite Realty (COR) and Digital Realty Trust (DLR) finished with gains aof about 30 percent, while DuPont Fabros Technology (DFT) was up nearly 14 percent on the year. All three benefited from a strong leasing environment, as well as growing attention to the strength of the data center REITS compared to other real estate asset classes.

All three easily outpaced the Dow Jones Industrial Average, which improved by 5.5 percent on the year, as well as the S&P 500 (flat for the year) and the Nasdaq composite index (-1.8%).

The content delivery sector fared the worst, as Akamai (AKAM) and rival Limelight Networks (LLNW) lost 31 percent and 49 percent, respectively, for the year. Both stocks were battered by the increasingly competitive CDN market, which led to declines in pricing for many services.

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

About the Author

Rich Miller is the founder and editor at large 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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3 Comments

  1. Robert

    Market Cap Rackspace Hosting (RAX) 5.43B CoreSite Realty Corporation (COR) 367.62M Digital Realty Trust (DLR) 6.71B Equinix (EQIX) 4.93B DuPont Fabros Technology (DFT) 1.48B InterXion (INXN) 899.65M Internap Network Services Corporation (INAP) 303.40M CenturyLink (CTL) 22.82B Akamai Technologies (AKAM) 6.04B Limelight Networks (LLNW) 334.87M

  2. Robert

    Just for comparison's sake Market Cap Red Hat (RHT) 8.30B Citrix Systems (CTXS) 11.68B NetApp (NTAP) 13.01B VMware (VMW) 35.18B EMC Corporation (EMC) 45.45B

  3. Robert

    Basically off-topic but interesting, I guess :-) It has been nearly eight years since EMC acquired VMware. The acquisition announcement went over the newswires on December 15, 2003. EMC paid approximately $635 million for VMware