4D·

Hochtief Benefits from the Data Center Boom

$HOT (-0.83%) Also because of the ticker 🌶️

The booming demand for data centers is giving Hochtief, Germany’s largest construction group, a boost. The new DAX member raised its profit forecast today. It now expects consolidated operating profit of 1.025 to 1.1 billion euros in 2026, announced the subsidiary of the Spanish infrastructure group

$ACS (-0.14%)

ACS, announced today. This represents an increase of about 30 to 40 percent compared to the previous year.

The company explained that the forecast increase was driven by “positive business performance,” which is primarily attributable to its U.S. subsidiary Turner, “which is seeing very strong demand growth in the data center market.” Accordingly, Hochtief also raised its profit forecast for Turner.

Hochtief is building data centers for Meta in the U.S., among others, and the group is also active in this field in Europe and Germany.

Source: ntv.de

6 Comments

jkb92@jkb92

It will still correct significantly over the next few weeks or months.

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Bavarianholder@Bavarianholder

@jkb92 🔮?

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jkb92@jkb92

@Bavarianholder Some call it that; others call it technical analysis. Despite the decline since the end of May, the stock is still in overbought territory (RSI 73) on the highest time frame. In the short term, it could rise again, but in the medium term, there will be a major correction. You just have to look at how far it has moved away from its 200-week EMA.

The stock has also already formed a minor peak on the lower time frame.

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Smudo@Smudeo

@jkb92 Are you familiar with momentum?

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jkb92@jkb92

@Smudeo Yeah, sure, things are on a downward trend right now 😁
Let's talk in a few months.

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jkb92@jkb92

@Smudeo That aside, you can see with Chips that even the strongest momentum is finite.

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