The Nextdc (ASX:NXT) share price came crashing back to earth in early September, the ASX200 high flyer crashing 20 per cent lower after reporting FY18 profits above expectations, but guiding to a lower rate of revenue growth in FY19.
Unlike the swift punishment handed out to the share prices of some former market darlings — like Speedcast International (ASX:SDA) and ARQ Group (ASX:ARQ) — from August 31, Nextdc shares fell two or more percent for seven days in a row such that at around $6, they now trade around 20 per cent off their recent peak.
Writing on Livewire, Andrew Mitchell of the top performing fund manager Ophir Asset Management, says Nextdc has been Australia’s most successful data centre operator.
The business generates $161 million of revenue from 972 customers utilising 8 data centre locations across Australia. Nextdc is in the process of building three more data centres.