Equinix, Inc. (EQIX) in Redwood City, Calif., is a digital infrastructure company that enables digital leaders to bring together and interconnect foundational infrastructure that powers their businesses. In comparison, Digital Realty Trust, Inc. (DLR), in San Francisco, supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation, and interconnection solutions.
With concerns about high inflation and the Federal Reserve decision to raise interest rates, as well as fears over the impact the spread of the COVID-19 omicron variant may have on the economy, the stock market is expected to remain under pressure in the near term. Amid this environment, investors could turn toward REIT stocks to hedge their portfolios against short-term market volatility by ensuring a steady income stream. Consequently, we think both EQIX and DLR might rally.
