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The Market Dropped - Plummeted - Tanked - Skidded - Those Hosting Stocks

The Dow lost 777 points yesterday. Sounds like a game…we lost points. Yes a 10% drop (Note – On "Black Monday", October 19, 1987, the Dow fell 22.61%).

Yes today there was a loss of $1.2 trillion.

I always ask the question on days like this…”Where did that money go?”  OK how did the hosting industry fare.

    * Level 3                    -16.00%

    * Limelight                  -14.50%

    * Internap                   -13.90%

    * Digital Realty Trust       -13.60%

    * Equinix                    -10.60%

    * Savvis                     -10.20%

    * NaviSite                   -8.30%

    * Terremark                  -5.90%

    * Rackspace                  -3.70%


Yes a bit of a slide.

In Europe most exchanges dropped 3-5%. That was in the anticipation of the $770 billion bailout. In contrast the TOKYO Nikkei Stock Average fell 1.3%. – Tokyo trading ended well after the bailout vote collapsed.  This could be a theme.

I doubt if the foreign markets see this as wise. They origionally thought our government was acting rashly, tryng to spend $770 billion overnight. Now they know our legislatures have been working on this for 5 days, they have acted prudently. They have scaled it down to about $150 billion a day. Isn’t it time for a coffee break?

In my last Blog I suggested that hosting companies look to Europe as a financing source. A reminder that the Concorde is no longer in service.

Most of this was witten overnight - but as of this writing the Dow is up 200 points.

More about Tom:

NCC - the Hosting Business Broker

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