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Investor Insights

This summary was created by AI, based on 6 opinions in the last 12 months.

Equinix, Inc. (EQIX-Q) has garnered mixed insights from various experts. While there is an optimistic outlook for growth driven by increased demand for data centers, especially in light of the rise of AI technologies and major companies like Amazon supporting their services, concerns about the high valuation and substantial debt persist. Analysts highlight that the stock trades at a price-to-cash-flow ratio of 25-33x, which could limit its upside and leave little room for errors. There are also mentions of external challenges, including foreign exchange and power costs. However, despite some short-term uncertainties and the impact of a recent short report by Hindenburg, the long-term potential in the data center space remains a point of interest, with an anticipated earnings growth of around 10% next year, making EQIX a compelling, albeit careful, investment opportunity.

Consensus
Mixed
Valuation
Overvalued
BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Other than its high debt, we think the outlook is decent here, with good growth expected. Q4 results were strong, but 2025 guidance was messy, and this could continue to weigh on shares. There are also some f/x and power headwinds. Overall, though, we think there is decent potential here for growth. We do have a harder time getting over the very high valuation of 33X cash flow. This leaves little room for errors/mistakes and thus leave us a bit less enamoured. 
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DON'T BUY

It's been a REIT since 2015. Crown Castle and American Tower have lagged in comparison. The challenge with EQIX is that it already rallied due to its partnership with Amazon. However, he wouldn't chase this now in this part of the cycle.

TOP PICK

Trades at 25x free cash flow. A landlord to the digital world, housing data centres, and are the biggest public company in the world doing this. Companies and their vendors can all be connected via Equinix ("interconnection"), which benefits all.

(Analysts’ price target is $928.46)
TOP PICK

Trades at 25x free cash flow. A landlord to the digital world, housing data centres, and are the biggest public company in the world doing this. Companies and their vendors can all be connected via Equinix ("interconnection"), which benefits all.

(Analysts’ price target is $928.46)
WEAK BUY

He's quite bullish on the data centre space. Demand is really outpacing supply for the first time in years, at a time when AI deployments have only just begun. The big-data guys like MSFT, AMZN and GOOG are taking all the space they can.

One of the largest REITs in US and globally. 10% earnings growth next year, trades at 25-30x. Interesting runway for growth. See his Top Picks.

HOLD
Hindenburg short report.

Visited company HQ last week. Management has responded to the report, more to come, stock's already recouped losses from the report. About to see explosive growth in data centres with AI, current supply can't meet demand. In a great position. Well run. Digest short-term noise, feels good long term.

PAST TOP PICK
(A Top Pick Mar 29/23, Up 26%)

Should be one of the Magnificent 7. Huge migration to cloud, cloud resides in data centres, and EQIX is the biggest one out there. Growth of cloud still in early innings. Really good at scaling because they're so big. Beat top and bottom, guided up. 12-month price target of $992, decent runway.

DON'T BUY

Storage company for data (competes with AWS). Good for large corporations. Single server source. Many competitors in the market making business harder. Historically, share price has preformed well. Sector entering a commodity phase. Would not invest at this time. 

BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EQIX operates as a data center REIT, and is now trading at 31.7x times' EV/EBITDA (historical averages range from 22x to 33x). The company's growth was mainly fueled by acquisitions of data centers by issuing debt and equity. The balance sheet is leveraged, similar to other REITs in the industry, with net debt of $14.3B, and net debt/EBITDA is currently at 5.1x. The company had a continuous track record of growing AFFO lasting for around a decade, which supports consistent dividend growth. We like EQIX, but the valuation may not be attractive enough for an entry point, we would be comfortable averaging into the position and nibble into the name when opportunities present. The income is solid, but we would not be in a big rush to add. That being said, lower interest rates (if they occur) should be quite positive for the sector overall. 
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TOP PICK

King of all data centre REITs. Phenomenal company. Great scale. Picks and shovels in AI, and AI is all about data. Biggest data centre in the world, as all the big cloud companies use it. Relentless growth in cloud, secular growth still in early innings. Yield is 1.98%.

(Analysts’ price target is $780.71)
HOLD

A tough call. Some feel data centres will pull back, but others see e-commerce spending continuing. Doesn't pay much of a yield. Good chart.

WAIT
Sold, and gravitated more towards the cloud. Very decent runway. Relentless growth toward the cloud. Scale becomes a competitive advantage. Did well from work from home. Huge borrowing costs, which have really hit the bottom line. (Analysts’ price target is $743.00)
DON'T BUY
PLD-N vs. EQIX-Q. PLD is the largest operator of industrial warehouse space globally. It is a fantastic company. It has benefitted so much from everyone going online and buying goods. EQIX-Q is focused on data center space. A great operator. The largest in its space. He prefers industrial space over data center space. The supply side is the big question and there is little supply of industrial space but there is lots of data center space. He prefers PLD-N.
BUY ON WEAKNESS
A long-time favourite of his. A REIT that holds data centres. It pays only a 1.32% dividend. It hit an all-time high earlier this month, but has pulled back 6%, so it's a good entry point. Maybe wait till it hits $10. Buy in any pullback. Offers the best growth in this space.
PAST TOP PICK

(A Top Pick Jan 28/20, Up 12%) They host Google cloud, Amazon cloud and AT&T. Busy is booming. It's a growth vehicle, but growth stocks are currently out of favour. The price has pulled back, so it's a buying opportunity. He still likes it.

Showing 1 to 15 of 27 entries

Equinix, Inc. (EQIX-Q) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 4

Stockchase rating for Equinix, Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Equinix, Inc. (EQIX-Q) Frequently Asked Questions

What is Equinix, Inc. stock symbol?

Equinix, Inc. is a American stock, trading under the symbol EQIX-Q on the NASDAQ (EQIX). It is usually referred to as NASDAQ:EQIX or EQIX-Q

Is Equinix, Inc. a buy or a sell?

In the last year, 4 stock analysts published opinions about EQIX-Q. 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Equinix, Inc. .

Is Equinix, Inc. a good investment or a top pick?

Equinix, Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Equinix, Inc. .

Why is Equinix, Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Equinix, Inc. worth watching?

4 stock analysts on Stockchase covered Equinix, Inc. In the last year. It is a trending stock that is worth watching.

What is Equinix, Inc. stock price?

On 2025-03-14, Equinix, Inc. (EQIX-Q) stock closed at a price of $836.67.