Equinix Earnings: Underlying Metrics Not as Positive as Revenue Suggests, but Outlook Remains Bright

There were plenty of data points for both bulls and bears to latch on to in narrow-moat Equinix’s third quarter, and we continue to find ourselves squarely in between. We still expect demand to remain very strong for data center space for the foreseeable future, and the quality of Equinix’s portfolio makes it uniquely positioned to best serve many customer needs. However, we believe the current stock price reflects even better performance than we expect, and we maintain our $630 fair value estimate. We also think Digital Realty is closing the gap with Equinix as the firm with the most useful data centers for tenants.