I/we have no positions in any stocks mentioned, but may initiate a long position in EQIX over the next 72 hours. While there is ample competition in each region, country and metro, the scale of Platform Equinix creates a true global moat. Alternatively, if leasing meets or exceeds expectations with ample sales funnels and deal pipelines and pre-sold backlog, expect shares to rally from here on Q3 results. A rally which began in December 2016 once again rewarded investors handsomely, until noticeably weakening during the past few weeks.
Data center REIT shares had been trading near or at all-time highs the week of September 10, 2017. These valuations, based upon expectations for continued long-term growth, created a perfect storm situation. Although Moderna has other vaccines in its pipeline, none have come to market, and the viability of its mRNA vaccine-making platform — the basis of the company — is on the line. It is a front-runner in the coronavirus vaccine race, and its stock has risen more than 250 percent since the beginning of the year. It closed at $69 a share on Friday afternoon, down 26 percent from a high Monday of $87. At the same time, a torrent of information is blasting from medical journals as well as company and university news releases.
The good news is history has shown that Moore’s Law is a friend, allowing operators to sell more power per square foot to customers as they upgrade with more and more powerful processors. More than 11 million Covid-19 infections have been confirmed in the U.S., according to data from Johns Hopkins University. Data from the COVID Tracking Project also showed that a record of more than 69,000 people in the U.S. are hospitalized with the coronavirus.
Upstart websites beat the journals and break the usual rules by publishing unvetted studies, some of dubious quality. And President Trump uses his bully pulpit to promote unproven treatments. If we were to rank all of these websites according to their traffic numbers, we would see a classic power law distribution. At the low end, the vast majority of these websites would be inactive, receiving little to no traffic.
A convincing argument can be made that faster chips will actually accelerate the demand for data center space, not the other way around. Moderna said Monday that its coronavirus vaccine was more than 94% effective during a late-stage trial. The promising announcement makes the Massachusetts-based biotech firm the second drugmaker to say it has a potentially effective vaccine.
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Dan Russo, chief market strategist at Chaikin Analytics, thinks the market can weather this latest spike in coronavirus cases, however. “By and large, investors are taking a glass-half-full view of the markets right now,” he added. “Supporting this rotation is the prospect for additional stimulus, continued improvement in earnings, a historic valuation gap and the prospect for improving global trade under a Biden administration.”
- While there is ample competition in each region, country and metro, the scale of Platform Equinix creates a true global moat.
- The good news is history has shown that Moore’s Law is a friend, allowing operators to sell more power per square foot to customers as they upgrade with more and more powerful processors.
- Little has been known about another closely watched product, remdesivir, an experimental treatment for Covid-19 developed by the drugmaker Gilead.
- Similar trial results last week from Pfizer and BioNTech drove investors into underperforming names dependent on a vaccine reopening the economy.
- This is even a better argument for data centers to benefit from this technology as the higher power draw will require very specific facilities and mechanical designs that CIO’s will find challenging to provide at scale if at all.”
On the upper end of the ranking though, a handful of websites receive the lion’s share of internet traffic. Payment processing firm Stripe was setting up to be the year’s biggest IPO with an estimated valuation of $95 billion, but got delayed. Likewise, online grocery delivery platform InstaCart, which saw a big upswing in traction due to the pandemic, has been looking to go public at a valuation of at least $39 billion. The AFFO growth rate and dividend growth rate are what attract long-term investors to Equinix. Based upon 2018e AFFO per share of $21.45, Equinix is currently trading at just over a 20x AFFO multiple. When you compare that with a high teens AFFO per share growth rate and double-digit increases in the dividend, it makes Equinix an attractive technology REIT to consider owning.
And the stock sale stirred concerns about whether the company had sought to jack up the price of its stock offering with the news. From much-hyped tech initial public offerings to food and healthcare services, many companies with already large followings have gone public this year. Some were supposed to go public in 2020 but got delayed due to the pandemic, and others saw the opportunity to take advantage of a strong current market. In the eight trading days since Palihapitiya’s bearish views were widely shared in the media, publicly traded data center REIT shares have been under consistent selling pressure. Here is his narrative in a nutshell, “Since server chips are getting smaller and more powerful than ever, companies in the future will not need anywhere near the amount of data center space they need today.”
In particular, TikTok has seen a surge in popularity in recent years and is now one of the most popular social media platforms in the world. Topping the list of most-visited websites in the world is, of course, Google. With over 3.5 billion searches per day, Google has cemented its position as the go-to source for information on the internet. The company also owns YouTube, the second-most popular website in the world. Together, Google and YouTube have more traffic than the next 48 websites combined.
Wall Street was coming off a mixed weekly performance in which beaten-down value names led the way higher at the expense of high-flying growth names. The Dow climbed 4% last week, and the S&P 500 notched emergency a 2.2% one-week gain. A vaccine “turns what could have been a prolonged crisis into something closer to a natural disaster ,” TS Lombard analysts Steven Blitz and Andrea Cicione wrote in a note.
Subsequently a minimal post-acquisition guidance cut from Equinix in October 2010, finally gave bears a reason to pounce on the stock and sector sending names like EQIX/DLR/COR down ~20% over the next 1-2 months. This has been followed by ~7 years of mostly consistent growth and share price appreciation for the sector, with the occasional sector pullbacks providing buying opportunities. A few days prior to the Developing Alpha conference in mid-September, most data center REITs had been trading at or near all-time highs. The iShares Russell 1000 Value exchange-traded fund rallied 5.7% last week while its growth counterpart, the iShares Russell 1000 Growth ETF slid 1.2%. Value continued to outperform on Monday, with IWD gaining 1.9% and IWF advancing just 0.5%. Stocks that would benefit from the economy reopening led the way higher.
They can be redeemed with CM-Equity for the underlying shares if desired. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. The full results were published on Friday in The New England Journal of Medicine.
I view this sell-off as an opportunity to buy the dip and establish positions in the hard-to-buy data center REIT sector. After nine months of record wholesale data center leasing activity in 2016, the past few months saw large leases in the US drop off, which was a huge disappointment for investors. Of course, last year Wall Street had to deal with a closely contested presidential election. Meanwhile, even with several of the data center REIT stocks trading 8% or more off recent highs, the investor returns YTD have been impressive. Notably, DuPont Fabros , the top-performing data center REIT of 2017, has completed a merger with Digital Realty Trust . This hides the impressive performance of DFT shares, which last traded at $66.31 per share, up over 40% during 2017, plus dividends.
“Without an effective vaccine, current EPS consensus expectations would be on the optimistic side. But with one, they may actually come to pass.”
Articles are posted on so-called preprint websites of studies that have not been peer-reviewed by experts, unlike articles in mainstream medical and science journals. Clinicaltrials.gov, which lists medical studies, showed that 1,673 were underway for Covid-19, the disease caused by the coronavirus, as of May 23. The company had not released any more data, so scientists could not evaluate its claim. The government agency leading the trial, the National Institute of Allergy and Infectious Diseases, had made no comment on the results.
Releasing sparse data is not unusual in the biotech world, where companies often present early trial results months before they are published in journals. Publicly traded companies are required to disclose material information that might lead an investor to buy or sell shares. The company said federal researchers who are conducting the trial would be responsible for submitting the data to be reviewed and published. A majority of 2021’s newly public companies have been in tech, including multiple mobile apps, websites, and online services. The two biggest IPOs so far were South Korea’s Coupang, an online marketplace valued at $60 billion after going public, and China’s ride-hailing app Didi Chuxing, the year’s largest post-IPO valuation at $73 billion.
Two spots are taken up by Aaj Tak and Globo, which are large media publications in India and Brazil, respectively. This visualization, using data from SimilarWeb, takes a look at the 50 websites that currently sit at the top of the ranking. However, the company has a low AFFO payout ratio of just ~50% and reinvests the other half of its free cash flow into accretive organic growth, underwritten at 30%-plus yields for each phase at stabilized occupancy.
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If you have not been following my research closely on Seeking Alpha, my recent Marketplace Roundtable interview with SA Pro Editor Daniel Shvartsman details why we are overweight data centers and focus on technology at REITs 4 Alpha. However, when it comes to large wholesale requirements, these data center landlords have hedged their bets by building just the powered shells (about 15-20% of capex) and then finishing the data halls in a matter of a few months’ time. Supply chains have become optimized around standard electrical switch gear, generators, UPS and HVAC components.
Hours after announcing positive results from a small trial of its coronavirus vaccine, Moderna Therapeutics unveiled a stock offering that sought to raise $1.3 billion. The majority of companies going public in 2021 chose the IPO route, but some of the biggest valuations resulted from direct listings. Despite its many tumultuous turns, last year was a productive year for global markets, and companies going public in 2021 benefited.
Bank stocks such as Citigroup and Wells Fargo gained more than 3% each and JPMorgan Chase advanced 2.8%. CM-Equity is fully regulated in Germany, and is a licensed financial institution permitted to offer such products. simplefx broker review All FTX users who trade tokenized stocks may also have to become customers of CM-Equity, and pass through CM-Equity’s KYC and compliance. Furthermore, all trading activity may be monitored for compliance by CM-Equity.
Ranked: The Top 50 Most Visited Websites in the World
The exponential growth of global data has been, and continues to be, a secular tailwind for data center landlords. This growth has been supported by faster chips, optical networking advances, fiber infrastructure, and submarine cable deployments, which support the increase in global IP traffic and enable hyper-scale cloud deployments.” Nine hours after its initial news release — and after the markets closed — the company announced a stock offering with the aim of raising more than $1 billion to help bankroll vaccine development. That offering had not been mentioned in Moderna’s briefings of investors and journalists that morning, and the company chairman later said it was decided on only that afternoon. Addressing the long-term IT needs for public cloud, enterprise and software firms by developing massive data centers can be risky. Especially when buildings are spec and when the lease-up of available phases does not necessarily fall neatly into financial reporting periods.
Moderna’s chairman, Noubar Afeyan, defended the decision to open a stock sale hours after releasing limited data. He said the company’s board had been considering an offering before Monday’s announcement, but finalized the decision only late in the day. The desperate hunt for treatments and vaccines has changed how researchers, regulators, drug companies like Moderna, investors and journalists do their jobs. Of course, it’s common that potential public listings and offerings fall through. Whether they get delayed due to weak market conditions or cancelled at the last minute, anything can happen when it comes to public markets. And there were many apps and services going public through other means as well.
Who’s Gone Public in 2021?
Asked about criticism that sites like medRxiv encourage the rash publication of bad science, Dr. Krumholz said these conversations were healthy and noted that articles in peer-reviewed journals could also be flawed. Submissions go through basic vetting to ensure the research is legitimate. The information would likely have leaked out — especially given that, two weeks earlier, information from another remdesivir trial had been disclosed to the news site STAT, sending Gilead’s stock up.
Traders were also excited on Monday after Moderna said its vaccine remains stable at 36 to 46 degrees Fahrenheit, the temperature of a standard home or medical refrigerator, for up to 30 days. By comparison, Pfizer’s libertex overview vaccine requires a storage temperature of minus 94 degrees Fahrenheit. But now, many papers are being published on preprint servers, where scientists are posting research before it is accepted by a journal.
Packing increasingly smaller and more powerful chips into servers and stacking them into heavy-duty racks lined up in rows in a data center generates a lot of heat and requires more electrical energy, not less. There is no “free lunch” regarding the laws of thermodynamics and physics . Weeks passed with no detailed data about the clinical trial being published, even though doctors were administering the drug with little information to guide them.