Concepts quickly changing... Witness the tanking of CDN stocks. Many of which are components of SKYY. All of this prompts one to wonder as to just what the heck is going on?
Well whats going on its suddenly realized that CDN providers need to co locate their equipment on the edge (as close as possible to the end user) for best performance results. All of this means money to lease space. On the other hand its becoming obvious that who controls the last mile on the I/net highway has the best advantage - the telcos like VZ. VZ & ATT are now developing their own CDN platforms. This will surly hurt the growth prospects of llnw, lvlt, akam and others.
SKYYs concept is of merit but how quickly can it shake those components whose 15 minutes of fame has come and gone. It was once assumed that the smaller shops who found it tough to compete would probably be acquired rather than see them fail or the strong would become stronger by gobbling up the weak and all this cannibalism would only benefit SKYY because it is a holder of both the strong and weak. In essence SKYY would be immune from any shakeouts. Am thinking that this logic is flawed.
There is just so much going on and its hard to track the growth of Cloud concepts and the best ways to deploy and manage the networks themselves - to understand all of this one would need to be a network analyst...
Do believe SKYY said it would re evaluate its holdings twice a year and hopefully it can adapt to the many changes taking place within the cloud.
If there is anything misleading or flawed in my rant please express your thinkings so that I can stand corrected and learn as much as possible... because I want to buy in on this ETF and sit still for the next 7 years and watch my money Quintuple.
Of all the CDN stocks you mentioned, SKYY only has AKAM. Adjusting its holdings every 6 months is a better improvement than those original Holder ETFs that never adjusted them. I think the holdings in SKYY with DOW <12000 will appreciate more than those in other tech ETFs in the next few years.
The companies mentioned are not components of SKYY and the only CDN is AKAMI. Did not mean to mislead.
Will be a buyer of this ETF when and if it hits my target price in the $16.. dollar range.
Am bullish on the Cloud concepts and expect the Industry to at least triple while the Tech rags expect a Quintuple. To date it seems that SKYY is the best medium to take advantage of the growth expectations. Maybe XLK could work as well its an ETF whose components are big tech companies.