I've been in Equinix ($EQIX) since about $300. Obviously it's been on a tear for a while now, as have most data center stocks. Seems that fear over new smaller and more efficient server equipment under development has caused a selloff in data center REITs, since those new chips would theoretically require less space. From the presentation referencing new google chip technology that may have started the selloff:
We can literally take a rack of servers that can basically replace seven or eight data centers and park it, drive it in an RV and park it beside a data center. Plug it into some air conditioning and power and it will take those data centers out of business.
Yet the need for data centers appears to still be growing with more and more device connectivity. There is also a theory that data and IT needs will continue consume all available capacity, no matter how much is added. Chips have gotten smaller and more efficient throughout recent history and that certainly has not slowed the need for space. FB and MSFT continue to invest billions in new data centers. So what does /r/investing think? Buy the dip or are we in for a longer term downtrend where there may be better opportunities in the coming months?
Submitted September 27, 2017 at 11:39AM by Lerk409 http://ift.tt/2wUEYMy
