Report
Alex Zhao
EUR 101.80 For Business Accounts Only

Cogent Mildly Disappoints in 4Q Due to Weaker Connection Growth; Shares Overvalued

Cogent Communications’ fourth-quarter results tracked below our expectations, with growth in revenue and customer connections softer than our projections. The main culprit was a year-over-year drop in quarterly sales from net-centric clients who buy connectivity from Cogent in data centers. According to Dyn.com, we suspect this is due to Apple’s ongoing efforts to build its own content delivery network, which lowers its connectivity with Cogent. This confirms our thesis that the net-centric reve...
Underlying
Cogent Communications Holdings Inc

Cogent Communications Holdings is a facilities-based provider of Internet access, private network services, and data center colocation space. The company's network is designed and optimized to transmit packet switched data. The company provides on-net Internet access services through its own facilities, which run from its network to its customers' premises. The company's on-net service consists of Internet access and private network services offered at speeds ranging from 100 Megabits per second to 100 Gigabits per second. In addition to providing its on-net services, the company provides Internet access and private network services to customers that are not located in buildings directly connected to its network.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Alex Zhao

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