EXDS as a very high class service provider, protected by size, capital time & cost, and maybe branding, but vulnerable to commoditization and simple competition. Suggest we agree to disagree.
Where's the disagreement? As Market Leader with more than twice the market share and IDC sq. footage, and most of the biggest customers, it is a King. Because it is a King, and NOT a gorilla, its tornado will be shorter, and it is riskier as an investment, because it doesn't dominate its value chain. Hence, it remains a market leader only as long as it out-executes the competition.
Because it has a qtr-to-qtr revenue growth of > 40%, it is in a tornado.
EXDS is a king, in a tornado. I would enjoy hearing why it isn't a king, or isn't in a tornado, using manual definitions of course.
Earnings out next week. We'll see.
Apollo |
