Data Center Stocks Are Plunging -- Here's Why
The stock market was having a rough day on Monday, with the S 500 (SNPINDEX: ^GSPC) benchmark index down by about 1.7% at 11 a.m. ET. However, real estate was one of the biggest exceptions, with the Vanguard Real Estate ETF (NYSEMKT: VNQ) slightly higher for the day. In simple terms, Treasury yields are under pressure, which is generally a positive catalyst for real estate stocks.
However, not all real estate stocks were performing well. Data center giants Equinix (NASDAQ: EQIX) and Digital Realty Trust (NYSE: DLR) were lower by 7% and 12%, respectively, and records storage real estate investment trust (REIT) Iron Mountain (NYSE: IRM) was down by more than 8%.
Before we go any further, let's just recap why the market is falling on Monday. The biggest headline is that China-based start-up DeepSeek launched a large language model (LLM) in December that was developed in (as claimed by the company) two months at a cost of under $6 million. The same company just released a reasoning model that is outperforming OpenAI's equivalent in certain third-party tests.
Source Fool.com
Equinix Inc. Stock
The stock is an absolute favorite of our community with 34 Buy predictions and no Sell predictions.
However, we have a potential of -2.07% for Equinix Inc. as the target price of 878 € is below the current price of 896.6 €.
