Whats wrong with Dupont Fabros investors?

The decision to walk away from Microsoft by Yahoo has had just about everyone in the industry abuzz with what is to come next.   Data Center Knowledge had an excellent DC-perspective on this event outlining that the net result would be that Microsoft and Yahoo will continue their Data Center building sprees.  Both Yahoo and Microsoft lease at least some portion of their global capacity in Dupont facilities. 

One line stood out for me in the DCK article:

• No More Uncertainty for Dupont Fabros: Leases with Microsoft and Yahoo account for nearly 70 percent of the revenue for Dupont Fabros, one of the major data center REITs. We don’t think there was ever a great deal of risk to Dupont Fabros or its investors from a Microsoft-Yahoo deal. During the merger talks, Hossein Fateh, President and CEO of DuPont Fabros, told analysts that that “discussions with Microsoft and Yahoo have not yielded any concerns about the current leases or potential expansion.” Still, it’s better to have your two largest customers in expansion mode than merging with one another.

I decided to dig a bit deeper and take a look at the DFT Stock price since the announcement to walk away, and I was a bit surprised and had to ask myself, ‘Whats wrong with DFT investors?’  Or perhaps the question is, what do they know that the rest of us dont?

Since the decision to continue on their on way, Yahoo has taken additional space from DFT and also from Digital Realty Trust.   In fact, of the Big 3, Yahoo is the most likely to take down leases.   Yet we have seen absolutely no movement (other than down in their stock price).  Is it because the Data Center Industry is too complicated for investors to figure out?  One thing is for sure, its something we should be watching closely.