Data Center Stock Looks to Reduce Footprint With Acquisition

Vertiv Holdings Co (NASDAQ:VRT) shares are down 2.9% to trade at $241.50, after the data center cooler agreed to acquire King Environmental Services in the fourth quarter. The European-based provider will expand Vertiv's capability to operate during system testing phases and leave an overall smaller physical footprint as AI demand continues to grow. 

Vertic shares are up 50.2% year to date, but has shed 36.4% since its May 14 all-time high of $379.91. Today's gap lower is met with support at the stock's 260-day moving average, which captured two pullbacks since July. 

Now may be a good time to weigh in on VRT options. The stock's Schaeffer's Volatility Index (SVI) of 54% stands higher than just 11% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.