Data Center Shares Hit Hard in Selloff

It was a tough day for data center shares, as Switch & Data (SDXC), Level 3 (LVLT), Limelight Networks (LLNW) and Rackspace (RAX) all got bruised.

Rich Miller

September 15, 2008

1 Min Read
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Shares of public companies in the data center sector were hit hard in Monday's steep selloff on Wall Street, which saw the Dow drop 504 points (4.5 percent) while the NASDAQ shed 81 points (3.6 percent).  

Data center shares were hit harder, in percentage terms, with 10 of the 13 companies we track suffering declines of 6 percent or more on the day. Hardest hit was Switch & Data (SDXC) which slid 13.5 percent, while Level 3 (LVLT), Limelight Networks (LLNW) and Navisite (NAVI) also taking double-digit hits.

The tough news continued for shareholders of Rackspace (RAX), which went public last month at $12.50 but declined 9.6 percent today to close at $8.24 a share. The stock of the San Antonio managed hosting company has lost 32.5 percent of its value since the IPO on Aug. 8.

It was also a rough ride for VMware (VMW), which saw its shares decline 6.3 percent even as the company announced several new technologies at its annual VMworld customer event.

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