The Megaport Ltd (ASX: MP1) share price has continued its strong run and pushed higher again on Tuesday.
At one stage the shares of the provider of elastic interconnection services across data centres globally were up over 4% to an all-time high of $6.22.
When Megaport's shares reached that level, it meant they had gained a massive 66% since the start of the year.
Why is the Megaport share price on fire in 2019?
Investors have been scrambling to get hold of the company's shares this year thanks to a series of positive updates and its increasingly promising outlook.
Its most recent update, for the third quarter of FY 2019, revealed that Megaport has continued to expand its network footprint to new markets while deepening its reach within existing metros.
At the end of the period, its total installed data centres reached 264, an increase of 19 or 8% over the prior three months.
The company also entrenched its leadership position in cloud networking by enabling several new cloud on-ramps globally. This included access to Oracle's newly launched Cloud Region in Toronto.
Another positive was that Megaport added to its Ecosystem of cloud providers with a new partnership with cloud computing software company Nutanix.
The combination of this and increasing demand led to Megaport reporting a 7% quarter on quarter increase in customer numbers to 1,367 and an 8% quarter on quarter lift in revenue to $8.96 million.
This meant the company finished the third quarter with Monthly Recurring Revenue (MRR) of $3.11 million, up 15% on the previous quarter.
This strong quarter went down especially well with analysts at UBS. In response to the update, the broker retained its buy recommendation and lifted its price target by a sizeable 37% from $4.55 to $6.25.
According to the note, the broker believes there is scope for further acceleration in its key operating metrics in the current quarter. It also suspects that this could have compounding benefits over the next couple of years.
Megaport isn't the only small cap tech share charging higher in 2019. Last week the Audinate Group Ltd (ASX: AD8) share price reached an all-time high and the iSignthis Ltd (ASX: ISX) share price has zoomed to a record high of its own today.
