NXT slipped 1.3% on Monday, 15c below where it recently raised $750mn to fund its expansion into Asia. It made us revisit how this data-centres shares performed after its previous raises:
- NXT launched a $1.3bn capital raise in April at $15.40 to fund the development of Australian data centres. The stock slipped only 1c below the raised price in April before turning higher later in the month; no clues here.
- In May 2023, NXT raised ~ $ $618mn at $10.80 to expand into Malaysia and New Zealand; again, the placement had little impact on the company’s share price.
- Unfortunately, history doesn’t always provide clues as to how a market will perform moving forward.
At this cycle stage, NXT’s share price is dancing more in tune with the volatile Nvidia (NVDA US) than the local tech sector.
- We like NXT below $16 from a risk/reward perspective – let’s hope patience is a virtue in this particular case.
MM likes NXT below $16, and it resides on our Active Growth Hitlist
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