Wall Street Says Not to Buy These Stocks, But Here's Why I Am

Wall Street veteran Jim Chanos has made a name for himself over the years by shorting stocks. His claim to fame was shorting Enron before it filed for bankruptcy in 2001. That was one of many high-profile and profitable short positions Chanos' investment firm, Kynikos Associates, has taken over the years.

In an interview with the Financial Times, Chanos recently revealed his firm's latest short thesis. He's shorting Digital Realty (NYSE: DLR) and Equinix (NASDAQ: EQIX), the largest real estate investment trusts (REITs) focused on operating data centers. While Chanos is betting against these stocks, I'm taking the other side of that trade. Here's why.

Chanos believes that legacy data center operators will face growing competition from large tech giants Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Oracle (NYSE: ORCL), and Microsoft (NASDAQ: MSFT), which are currently some of their biggest customers. Chanos told the Financial Times: