EQIX - Equinix: Time To Pull The Trigger?

2024-06-17 17:30:24 ET

Summary

• Equinix is the largest data center REIT with a market cap of nearly $73bn, experiencing recent stock price volatility due to alleged accounting irregularities.
• Data center REITs are benefiting from the digitalization trend, with companies shifting to cloud storage, driving demand for data storage growth.
• EQIX has a strong global footprint, stable business performance, and a conservative balance sheet, but faces valuation challenges and accounting uncertainties.
• I compare EQIX to peer DLR and share my conclusions and action plan.

Equinix ( EQIX ) is the largest data center REIT with an expanding global footprint and a market cap of nearly $73bn. Data center REITs are at the heart of the secular tailwind around digitalisation, with companies around the world shifting to cloud storage.

EQIX has been on a turbulent ride recently, with the 52-week range in the share price showing a low of $678 to a high of $915. Recently, in the wake of accusations of some accounting irregularities, the stock has retreated back to $763 at the time of writing, prompting some analysts to rate EQIX a buy....

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