Equinix, Inc. (EQIX), headquartered in Redwood City, California, operates as a real estate investment trust. With a market cap of $95.7 billion, the company invests in interconnected data centers. Equinix focuses on developing a network and cloud neutral data center platform for cloud and information technology, enterprise, network, and mobile service providers, as well as financial companies.
Companies valued at $10 billion or more are generally described as “large-cap stocks.” EQIX easily fits the bill, with its market cap above that mark, indicating its size, influence and dominance in the niche REIT industry. Equinix’s extensive global network of 250+ data centers in 71 markets creates a powerful “network effect”, where each new customer adds value to existing customers for digital marketing. This broad platform, spanning 33 countries and a dynamic partner ecosystem, drives customer growth and bookings, giving Equinix a significant competitive edge.
Despite its considerable strength, EQIX is down 1.9% from the 52-week high of $992.90 reached on February 12. Over the past three months, EQIX stock has gained 29.8%, outperforming the S&P 500 Index ($SPX)’s 1% gain over the same time frame.
Shares of EQIX are up 27.2% on a YTD basis, compared to the SPX’s modest YTD gain. However, over the long term, the stock is up 7% over the past 52 weeks, dwarfing the SPX’s 17.4% return over the past year.
Confirming the bullish trend, EQIX has been trading above its 50-day moving average since early January, with little change. The stock has been trading above its 200-day moving average since late January, with little change.
On February 11, EQIX reported its fourth-quarter results, and its shares closed up more than 10% in the following trading session. Its FFO of $8.91 per share missed Wall Street’s expectation of $9.07 per share. The company’s revenue was $2.4 billion, missing Wall Street forecasts of $2.5 billion. The company expects full-year FFO of $41.93 to $42.74 per share, and revenue of $10.1 billion to $10.2 billion.
In the unique REIT competitive landscape, Digital Realty Trust, Inc. ( DLR ) has lagged EQIX, up 14.5% on a YTD basis, but has outperformed the stock with strong gains of 12.7% over the past 52 weeks.
