Benchmark Capital Discusses Equinix's Pre-Announcement Miss (EQIX)

Benchmark Capital discusses Equinix, Inc. EQIX earnings pre-announcement miss. It still rates shares at Buy. In the research report, Benchmark notes, "Our 2011 estimates will likely drop. We are reviewing. We view the Switch & Data disappointment as likely company-specific due to integration challenges. The pricing discount for large customers is not new but is more than previously anticipated. The digital media churn is not new either as Savvis (SVVS, Hold) has reported over the past two years. As such, we do not think this is a negative signal for the entire data center industry. In addition, we believe the fundamental macro drivers remain in place for sustained data center growth. Using the revised guidance, Equinix is growing 20% organically this year." Shares of EQIX are getting killed in pre-market, losing $26.79 to $78.30, a loss of 25.5%.