EQIX - Equinix Is A Buy After The Bounce: Financial Performance Still Robust
2024-05-13 09:30:00 ET
Summary
- EQIX has delivered an impressive FQ1'24 result, while guiding profitable growth in FY2024, with it benefiting from the ongoing cloud migration and “rapidly evolving AI landscape”.
- The REIT also boasts 346 MW in IT capacity as of February 2024 with up to 725 MW in overall capacity, once its multi-stage global investments are completed.
- Combined with its robust multi-year backlog and rich cash gross margins, it is unsurprising that EQIX reports a very healthy balance sheet, trumping that of its peers.
- With an extremely low AFFO payout ratio, the stock continues to offer a compelling dividend investment thesis, aided by the potential capital appreciation.
- Even if there remains some uncertainty from the ongoing SEC subpoena, it may be more prudent to let the pros handle their investigations and not speculate until further clarity is available.