Is NEXTDC the next big thing?

NEXTDC is a technology company enabling business transformation through innovative data centre outsourcing solutions, connectivity services and infrastructure management software.

The data centre industry is constantly growing alongside the global economy, especially with people are working and operating businesses from home.

NEXTDC recently announced that they have won several new material customer contracts, which is a positive sign for a high growth company. Revenues from these new contracts will be commencing during the 2021 financial year, according to management.

The CEO recently said, “The demand for our data centre services continues to accelerate and exceed our expectations, yet requires discipline and patience as the nexus between the hyperscale capacity planning, site development, infrastructure deployment and revenue recognition can in practice be 2-3 years for these very large hyperscale developments.”

NEXTDC solutions include:

• Data centre solutions
• Connectivity solutions
• Business continuity
• Disaster recovery

NEXTDC services include:

• Connectivity services
• Professional services
• Project management
• Technical support
• Custom colocation

NEXTDC main competitors:

• Global Switch
• Equinix
• Cologix
• Frontier

NEXTDC quick fundamentals:

• Nextdc (NXT) share price = 11.39$ AUD
• Market cap = 5.1 Billion AUD
• Share price year-to-date (YTD) performance= +63%
• Annual revenue = $137.4 million

My opinion:

I am buying NEXTDC shares for the long term. They are expanding every single day and I think there is still a lot of growth potential for the long term. The fact that they are able to land new contracts in tough times like these, makes me feel positive about the business. The stock has had some momentum when you look at the year-to-date performance.

The management is forward-thinking and plan for the long term.
I am buying some NEXTDC shares, for the long term.

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Higgo van Biljon
Easy user, Founder & CEO FinMeUp

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