- Basic businesses do make money but there has to be some moat protecting their castle – branding, regulations, deep technical expertise (low barrier), upfront capex, long contracts, etc. The fact that their primary moat is global presence, execution record and probably low price means that their margins will always be capped + I am not sure what premium you would pay for the first 2 things
SaaS players in US, you will notice that the reasons company is throwing around for delay in execution and in decision making is actually true and echoed by many.
But the companies main clients for data centers are hyperscalers, large social media companies, etc. both of which aren’t slowing down. So, this is probably a contract thing
No. of hyperscale data centers are doubling every 4 years, meaning ~18% CAGR growth which is not present here.
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