Equinix, Inc. (EQIX), headquartered in Redwood City, California, operates as a real estate investment trust and is the world's digital infrastructure company. With a market cap of $82.3 billion, the company invests in interconnected data centers. Equinix focuses on developing network and cloud-neutral data center platforms for cloud and information technology, enterprises, network, and mobile services providers, as well as for financial companies.
Companies worth $10 billion or more are generally described as “large-cap stocks.” EQIX effortlessly fits that bill, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the Specialty REIT industry. Equinix's vast global network of 250+ data centers in 71 markets creates a powerful "network effect," where each new customer adds value for existing ones, fostering a thriving digital marketplace. This expansive platform, spanning 33 countries and a vibrant partner ecosystem, drives customer growth and bookings, giving Equinix a significant competitive edge.
Despite its notable strengths, EQIX slipped 5% from its 52-week high of $914.93, achieved on Mar. 4. Over the past three months, EQIX stock has gained 14.1%, underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 17.2% gains during the same time frame.
In the longer term, shares of EQIX rose 7.9% on a YTD basis and climbed 12.4% over the past 52 weeks, underperforming XLRE’s YTD gains of 12.1% and 22.5% returns over the last year.
However, EQIX has traded above its 50-day and 200-day moving averages since early August.
On Aug. 7, EQIX shares closed down marginally after reporting its Q2 earnings results. Its funds from operations of $9.22 topped Wall Street estimates of $8.82. Its net income per share increased 43% year over year to $3.16. The company’s revenue was $2.2 billion, meeting Wall Street forecasts. EQIX expects full-year funds from operations to be between $34.67 and $35.30 and revenue to be between $8.7 billion and $8.8 billion.
In the competitive arena of Specialty REIT, Digital Realty Trust, Inc. (DLR) has taken the lead over EQIX, showing resilience with a 19.3% uptick on a YTD basis and solid 22.6% gains over the past 52 weeks.
Wall Street analysts are highly bullish on EQIX’s prospects. The stock has a consensus “Strong Buy” rating from the 25 analysts covering it, and the mean price target of $907.48 suggests a potential upside of 4.5% from current price levels.
On the date of publication, Neha Panjwani 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.
