Equinix, Inc. (EQIX), headquartered in Redwood City, California, is a global digital infrastructure company that provides a platform for interconnecting foundational infrastructure. Valued at $72.35 billion by market cap, the company offers digital services, data center services, interconnection services, and support services.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and EQIX fits right into that category, signifying its substantial size, stability, and dominance in its industry.
The leading REIT has fallen 16.7% from its 52-week high of $914.93, which it hit on Mar. 4. Shares of EQIX are down 10.6% over the past three months, underperforming the broader Real Estate Vanguard ETF’s (VNQ) 1.4% losses over the same time frame.
In the longer term, EQIX is down 1.2% over the past year and 4.5% in 2024. By contrast, the VNQ is down 4.8% on a YTD basis but up 0.2% over the past 52 weeks.
The stock has been trading above its 50-day moving average since early June but below its 200-day moving average since late May.
On May 9, EQIX stock was up more than 11% after the REIT reported Q1 adjusted EBITDA of $992 million, beating the consensus estimate of $976.90 million. The REIT’s funds from operations for Q1 stood at $843 million or $8.86 per share, surpassing the Wall Street estimates of $8.58. Its revenue came in at $2.13 billion, falling short of analyst estimates of $2.14 billion. EQIX has forecasted its full-year funds from operations to reach between $34.45 and $35.29 per share and revenue between $8.69 billion and $8.79 billion.
Highlighting the contrast in performance, another industry participant, Digital Realty Trust, Inc. (DLR), has outperformed EQIX. DLR stock has gained 43.4% in the past 52 weeks and 12.1% on a YTD basis.
Despite its recent underperformance compared to the real estate sector, analysts are optimistic about EQIX’s prospects. The stock has a consensus rating of “Strong Buy” from the 24 analysts covering it, and the mean price target of $903.41 is an 18.5% premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
