EQIX Stock Recent News

Equinix faces valuation headwinds despite strong long-term demand for data centers driven by AI and digital transformation. Recent guidance disappointed investors, with projected AFFO per share growth below expectations, triggering a sharp share price decline. Questions remain about EQIX's ability to modernize aging assets and maintain its competitive edge amid rising CapEx and industry shifts.

The data center industry is standing in front of major expansion due to the unbending popularity of artificial intelligence (AI). Despite that, top sector name Equinix (EQIX -9.23%) has been having a rough few days on the stock exchange of late, especially following its analyst day event on Wednesday.

Major U.S. equities indexes moved higher Thursday, with the S&P 500 on the brink of a new all-time high.

Shares in data center company and real estate investment trust (REIT) Equinix (EQIX -8.42%) were lower by nearly 10% by noon ET today. The decline comes after a slew of Wall Street analysts downgraded the stock the day after its analyst day presentation.

Equinix's shares fell 8% on Thursday after the data center firm forecast revenue growth below expectations and projected heavy investments to cater to AI demand in the long term.

For my initial coverage of a data center REIT, Equinix, I am calling it a buy. Several macro demand forecasts for data center capacity are positive, and the company's only other large rival in this niche is Digital Realty Trust. Global portfolio growth, healthy profit margins, proven dividend growth, and an investment-grade rating from Fitch add to the buy case.

EQIX is well-poised to benefit from a robust data center demand, recurring revenue model, expansion efforts and a healthy balance sheet.

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Equinix (EQIX) have what it takes?

I'm bullish on the tech-enhanced real estate sectors—cell towers, data centers, and industrial REITs—driven by e-commerce and AI growth. My top picks are American Tower, Prologis, and Equinix, forming the 'APE' tech-trifecta for strong returns. Each REIT offers attractive valuations, robust growth prospects, and solid balance sheets, with forecasted annualized returns of 16-20%.

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