Sympathy Plays Off The Teremark Buyout (VZ, TMRK, SVVS, EQIX)

Yesterday Verizon (NYSE: VZ) announced that it would be buying Terremark Worldwide Inc. (NASDAQ: TMRK) for $19 per share in cash, a 35% premium to where shares were trading before the announcement was made.

Cloud computing companies continue to get picked off, as we've seen in the past 12 months, with HP (NYSE: HPQ) buying 3PAR, and Dell (NASDAQ: DELL) recently buying Compellent Technologies (NYSE: CML).

Other names to consider in this space on the back of the Terremark deal are Equinix, Inc. (NASDAQ: EQIX) and SAVVIS, Inc. (NASDAQ: SVVS). If you're not comfortable buying these individual high flying names, consider buying the PowerShares Dynamic Networking ETF (NYSE: PXQ), which boasts a lot of cloud computing stocks among its holdings.

Equinix provides network neutral data center services to enterprises, content providers, financial services companies, and network service providers, while Savvis is a hosting and network services provider.

As the technology of cloud computing continues to gain mass adoption because of cost savings, the earnings for these companies will only continue to grow, as chief technology officers seek to get the most out of every single penny of their technology budgets.

Disclosure: no position in names mentioned