With a market cap of $84.9 billion, Equinix, Inc. (EQIX) is a digital infrastructure company. The Redwood City, California-based company’s platform, Equinix, combines a global footprint of International Business Exchange (IBX) and xScale data centers internationally and interconnects foundational infrastructure at software speed.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Equinix fits this criterion perfectly. The company’s solutions include Equinix SmartView, Equinix Smart Hands, and Equinix Smart Build (ESB), which enable the support of customers.
The data center specialist crumbled 12.3% from its 52-week high of $994.03. In addition, shares of EQIX dropped 11.5% in the past three months, underperforming the broader Nasdaq Composite ($NASX), which declined 9% over the same period.
In the long term, EQIX is down 7.5% on a YTD basis, lagging behind NASX's 6.4% decrease. In addition, shares of EQIX have slipped 3.8% over the past 52 weeks, compared to NASX’s 12.7% increase over the same time period.
EQIX stock has mostly been trading above its 50-day and 200-day moving averages since last year. But, the stock has fallen below its 50-day moving average since January.
Shares of Equinix fell 1.3% following its Q4 2024 earnings release on Feb. 12. The company reported a GAAP net loss of $14 million, a sharp decline from the prior year’s $227 million profit, largely due to $233 million in impairment charges that drove operating expenses up 9% to $962 million. Revenue came in at $2.3 billion, missing the analyst estimate, while AFFO per share rose 8.5% year-over-year to $7.92 but still fell short of the consensus. Additionally, Equinix’s full-year 2025 revenue forecast of $9 billion to $9.1 billion disappointed investors, as it came in below analyst expectations.
However, in comparison, rival American Tower Corporation (AMT) outperformed EQIX. AMT shares climbed 12.8% on a YTD basis and edged up marginally over the past 52 weeks.
Despite EQIX’s weak performance, analysts remain bullish about its prospects. Among the 27 analysts covering the stock, there is a consensus rating of “Strong Buy,” and it is currently trading below the mean price target of $1,027.25.
