#4 - Equinix (NASDAQ:EQIX)
Real estate investment trusts (REITs) are another way to play the expected growth in data centers. Equinix Inc. (NASDAQ: EQIX) is the world’s largest digital infrastructure company and the largest pure-play data center REIT in the United States.
The company’s network is composed of 260 data storage centers in multiple regions that keeps cloud providers in close proximity to its end users. It has strategic partnerships with Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOG), and Oracle Corp. (NYSE: ORCL).
Where Equinix stands out in its capital-light, Xscale initiative that allows the company to expand its global footprint through a combination of leasing properties and entering into joint ventures. In addition to allowing for rapid growth, this model also provides the company with long-term sustainability.
EQIX stock is up just 2.46% in 2024. However, the stock has had a 24% swing from its peak to trough this year. The lackluster performance is primarily due to the company continuing to post some substantial misses on earnings. But EQIX has a total return of 64.63% in the past five years which includes the dividend that it’s required to pay as a REIT.
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
- Current Price
- $875.20
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $944.63 (7.9% Upside)
