Equinix, Inc. (EQIX), headquartered in Redwood City, California, holds a market cap of $93.5 billion. The company is recognized as a leader in digital infrastructure, providing services such as colocation, interconnection, and managed IT solutions. Its platform enables businesses to grow quickly, offer digital services efficiently, and boost performance while adhering to sustainability goals.
Large-Cap Stock with Steady Revenue
As a company valued over $10 billion, Equinix is classified as a “large-cap” stock. It operates on a recurring revenue model, utilizing fixed-rate contracts. These contracts encompass digital ecosystems and expert consulting services.
Shares of Equinix have experienced a small setback, declining 2.5% from their 52-week high of $994.03 reached on November 27. Nonetheless, the stock has risen 11.6% over the last three months. This performance exceeds the broader S&P 500 Index’s ($SPX) gain of 10.3% during the same period.
Long-Term Outlook Remains Mixed
Looking at the year-to-date data, EQIX stock has increased by 19.9%, which still lags behind the SPX’s 27.1% gain. Additionally, EQIX shares have grown only 20.4% over the past 52 weeks, compared to the SPX’s impressive 31.7% return. Still, EQIX has consistently traded above its 50-day and 200-day moving averages since July without significant fluctuations.
Strong Q3 2024 Financials
On October 30, Equinix reported a solid Q3 2024 performance, with an AFFO per share of $9.05, surpassing analysts’ expectations and reflecting a 10.5% year-over-year increase. The company’s quarterly revenue reached $2.2 billion, meeting forecasts and rising 6.8% from the previous year, thanks to growth in colocation and interconnection revenues. Furthermore, Equinix revised its 2024 outlook, anticipating total revenue between $8.7 billion and $8.8 billion, with an AFFO per share estimate of $34.81 to $35.22. The company also declared a quarterly cash dividend of $4.26 per share. Interestingly, following these good results, EQIX shares slightly declined the next trading day.
Comparative Performance Against Competitors
In contrast, EQIX has underperformed rival Digital Realty Trust, Inc. (DLR), which has seen a remarkable 39.8% increase over the past year and a rise of 40% year-to-date.
Analysts Maintain Optimistic Outlook
Despite its slower performance over the last year, analysts show confidence in Equinix’s potential. The stock holds a consensus rating of “Strong Buy” from 26 analysts. Currently, EQIX is trading below the mean price target of $978.29.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
