Equinix Stock (NASDAQ:EQIX), Trade Ideas

Equinix

Equinix operates 260 data centers in 71 markets worldwide. It generates 44% of total revenue in the Americas, 35% in Europe, the Middle East, and Africa, and 21% in Asia-Pacific. The firm has more than 10,000 customers, including 2,100 network providers, that are dispersed over five verticals: cloud and IT services, content providers, network and mobile services, financial services, and enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from interconnection. Equinix operates as a real estate investment trust.

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Discover the latest collaboration between Equinix and PGIM Real Estate, forming a $600 million joint venture to develop the first xScale data center in the U.S. 

Equinix Forms Its Second Joint Venture With PGIM Real Estate - What&#39;s On The Cards?

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Find investment opportunities by anticipating trends, not following them. Look for overlooked pick and shovel plays, like data infrastructure providers.

How To Beat The Herd: Finding Stock Opportunities Where Others Aren&#39;t Looking

Equinix Inc

Equinix's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NYSE">EQIX</a>) short percent of float has risen 47.12% since its last report. The company recently reported that it has 2.04 million shares sold short, which is 2.81% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.87 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Equinix Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1713548723_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Equinix has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Equinix's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Equinix's peer group average for short interest as a percentage of float is 4.03%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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How Is The Market Feeling About Equinix?

Recent unexpected strength in the March Consumer Price Index (CPI) and retail sales report shook the bond market this past week, triggering a sell-off in interest-rate sensitive stocks such as real estate investment trusts (REITs).
The Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) sank 6.5% from $85.97 to $80.32 over the past four trading days as of April 17, 2024. REITs across several different sub-sectors, such as Prologis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>), SL Green Realty Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLG#NYSE">SLG</a>), Simon Property Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPG#NYSE">SPG</a>) and Equinix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) sold off between 5% to 8% over the same timeframe.
Not all REITs have suffered a decline. A handful have performed well during this short but volatile period and could continue outperforming other REITs should the market continue its decline. Take a look at four that bear watching.
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Medical Properties Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPW#NYSE">MPW</a>) is a Birmingham, Alabama-based healthcare REIT that owns and operates 439 general acute care and other properties across the U.S. and nine other countries, with locations in Europe and Australia. Its total portfolio before the sale was $18.3 billion, with about two-thirds of those general acute care hospitals in the U.S.
Two positive events over the past week have boosted Medical Properties Trust. On April 12, Medical Properties Trust announced it would pay a quarterly cash dividend of $0.15 per share on May 1 to shareholders of record on April 22. This will be the second dividend paid since the dividend was cut last September from $0.29 to $0.15 per share.
After the closing bell on April 12, Medical Properties Trust announced that it sold its majority interest in five Utah hospitals to an unnamed investment fund.
The sale was to a new joint venture, with the investment fund buying 75% of the portfolio for $886 million and MPW retaining a 25% interest. Simultaneous with the closing, the venture placed new non-recourse secured financing, providing $190 million of additional cash to MPW. The two transactions combined will provide MPW with approximately $1.1 billion in cash for reducing outstanding debt, including a $300 million Australian term loan that matures this year.
On April 15, the first trading day following the announcement, Medical Properties jumped 18.80%. Over the last five trading days, Medical Properties Trust has gained 15.89%.
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NewLake Capital Partners Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NLCP#OTC">NLCP</a>) is a New Canaan, Connecticut internally managed specialized industrial REIT with 31 properties of 1.7 million square feet across 12 states. NewLake Capital Partners specializes in triple-net leases to cannabis companies and provides capital to them when necessary.&nbsp;&nbsp;
NewLake was founded in 2019 and had its IPO in August 2021. Its tenants include the largest companies in the cannabis industry, such as Curaleaf, Cresco Labs and Trulieve. As of March 2024, it had a 100% occupancy rate, with an average of 14.3 years remaining on its lease terms and 2.6% annual rent escalations on 15- to 20-year lease terms.&nbsp;&nbsp;
On March 11, NewLake announced its Q4 operating results. Funds from operation (FFO) of $0.51 beat the estimate of $0.45 and its FFO of $0.48 in Q4 2022. Revenue of $13.02 million beat the estimate of $11.41 million and topped Q4 2022 revenue of $12.18 million.
On March 11, Newlake Capital Partners raised its quarterly dividend from $0.40 per share to $0.41 per share. The $1.64 annualized dividend yields 8.93%.
On April 2, the Florida Supreme Court approved an initiative to legalize recreational marijuana in Florida through a referendum on the November ballot. This move could benefit NewLake, as it has one Florida property leased to Curaleaf Holdings and has several other tenants with Florida locations.&nbsp;&nbsp;&nbsp;
Over the past five trading days, NewLake Capital Partners has gained 4.46%. Investors should remember that an OTC stock with a market cap of only $388.79 million and an average daily volume of about 49,000 shares can be volatile.
Centerspace — INVESTORS REAL ESTATE TRUST REIT (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSR#NYSE">CSR</a>) — is a Minot, North Dakota-based residential REIT focused on the ownership, management, acquisition and redevelopment of apartment buildings. Its portfolio covers 70 apartment complexes with 12,883 apartments across the Midwestern and Mountain states of Colorado, Minnesota, Montana, Nebraska, North Dakota and South Dakota. As of February 2024, Centerspace had an occupancy rate of 94.3%. 
On February 20, Centerspace announced its Q4 operating results. FFO of $1.22 beat the consensus estimate of $1.11, and revenue of $64.07 million also beat the consensus estimate of $63.99 million.
Centerspace announced its Board of Trustees approved a quarterly dividend of $0.75 per share, payable on April 8 to common shareholders at the close of business on March 28. The dividend is an increase from $0.73 per share. The annualized dividend of $3 presently yields 5.25%.&nbsp;
On April 8, Centerspace announced it would release its first quarter operating results on April 29. Centerspace has gained 4.06% over the past five trading days as of April 16, 2024.
Acadia Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AKR#NYSE">AKR</a>) is a Rye, New York-based retail REIT with 190 properties across centralized urban areas in 22 states and Washington, D.C.&nbsp;
On April 5, BOA Securities analyst Craig Schmidt upgraded Acadia Realty Trust from Neutral to Buy and raised the price target by 11.1% from $18 to $20.
On April 15, Acadia announced it closed on an expansion of its $750 million senior unsecured revolving credit and term loan facility. The credit facility now matures on April 15, 2028, but has two six-month extension options.&nbsp;
Acadia has gained 2.50% over the past five trading days. Acadia will announce its Q1 2024 earnings on April 29.
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In the latest quarter, 12 analysts provided ratings for Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>), showcasing a mix of bullish and bearish perspectives.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">7</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Equinix, presenting an average target of $795.92, a high estimate of $960.00, and a low estimate of $91.00. Witnessing a positive shift, the current average has risen by 5.74% from the previous average price target of $752.70.
<img src="https://www.benzinga.com/files/images/story/2024/1713366017_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The perception of Equinix by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Brendan Lynch</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$669.00</td>
<td>$818.00</td>
</tr>
<tr>
<td>Simon Flannery</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$762.00</td>
<td>$767.00</td>
</tr>
<tr>
<td>Phani Kanumuri</td>
<td>HSBC</td>
<td>Announces</td>
<td>Hold</td>
<td>$900.00</td>
<td>-</td>
</tr>
<tr>
<td>Timothy Horan</td>
<td>Oppenheimer</td>
<td>Raises</td>
<td>Outperform</td>
<td>$950.00</td>
<td>$875.00</td>
</tr>
<tr>
<td>Anthony Hau</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$950.00</td>
<td>$915.00</td>
</tr>
<tr>
<td>Erik Rasmussen</td>
<td>Stifel</td>
<td>Maintains</td>
<td>Buy</td>
<td>$960.00</td>
<td>-</td>
</tr>
<tr>
<td>Brendan Lynch</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$91.00</td>
<td>$79.00</td>
</tr>
<tr>
<td>Jonathan Atkin</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$950.00</td>
<td>$855.00</td>
</tr>
<tr>
<td>Eric Luebchow</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$825.00</td>
<td>$800.00</td>
</tr>
<tr>
<td>Ari Klein</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$925.00</td>
<td>$910.00</td>
</tr>
<tr>
<td>Brendan Lynch</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$781.00</td>
<td>$788.00</td>
</tr>
<tr>
<td>Brendan Lynch</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$788.00</td>
<td>$720.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Equinix. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Equinix compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Equinix's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/EQIX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Equinix analyst ratings.</a>
<h2>All You Need to Know About Equinix</h2>
Equinix operates 260 data centers in 71 markets worldwide. It generates 44% of total revenue in the Americas, 35% in Europe, the Middle East, and Africa, and 21% in Asia-Pacific. The firm has more than 10,000 customers, including 2,100 network providers, that are dispersed over five verticals: cloud and IT services, content providers, network and mobile services, financial services, and enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from interconnection. Equinix operates as a real estate investment trust.
<h3>Equinix: Delving into Financials</h3>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Equinix's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 12.81%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.
Net Margin: Equinix's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 10.78%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Equinix's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.87%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Equinix's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.71%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Equinix's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.4.
<h2>Analyst Ratings: What Are They?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

Expert Ratings For Equinix

Barclays analyst Brendan Lynch maintains Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) with a Equal-Weight and lowers the price target from $818 to $669.

Price Target

Barclays Maintains Equal-Weight on Equinix, Lowers Price Target to $669

Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) has outperformed the market over the past 15 years by 5.33% on an annualized basis producing an average annual return of 17.96%. Currently, Equinix has a market capitalization of $70.43 billion. 
Buying $100 In EQIX: If an investor had bought $100 of EQIX stock 15 years ago, it would be worth $1,188.37 today based on a price of $742.14 for EQIX at the time of writing.
<h3>Equinix's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1713299424_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $100 Invested In Equinix 15 Years Ago Would Be Worth Today

Equinix Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) and&nbsp;PGIM Real Estate, the real estate investment and financing arm of PGIM,&nbsp;Prudential Financial, Inc.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRU#NYSE">PRU</a>) global asset management business, have&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38246007/equinix-and-pgim-real-estate-enter-into-600-million-jv-for-first-xscale-data-center-in-the-u-s" rel="noreferrer noopener">entered into a joint venture.</a>
The $600 million joint venture will develop and operate the first xScale data center in the U.S., located in the Silicon Valley region of California.
The two-story facility, to be known as SV12x, will be built in two phases and is expected to provide more than 28 megawatts (MW) of power capacity.
The agreement represents the second joint venture between Equinix and PGIM Real Estate.
The new joint venture, along with others, will bring the global xScale data center portfolio to more than $8 billion across more than 35 facilities, and an expected greater than 725 megawatts of power capacity.
Under the terms of the agreement, PGIM Real Estate will control an 80% equity interest in the joint venture, and Equinix will own the remaining 20% equity interest.
Price Action: EQIX shares are trading lower at 1.71% at $751.00 on the last check Monday.
Image sourced from Shutterstock

Equinix Forms Its Second Joint Venture With PGIM Real Estate - What's On The Cards?

<a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4140365-1&amp;h=1508041190&amp;u=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D3381265-1%26h%3D1470682381%26u%3Dhttps%253A%252F%252Fwww.equinix.com%252F%26a%3DEquinix%252C%2BInc.&amp;a=Equinix%2C+Inc.">Equinix, Inc.</a>&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>), the world's digital infrastructure company&#xAE;,&nbsp;and PGIM Real Estate, the real estate investment and financing arm of PGIM, Prudential Financial's global asset management business, today announced the entry into a&nbsp;$600 million&nbsp;joint venture to develop and operate the first xScale data center in&nbsp;the U.S., located in the Silicon Valley region of California.
The two-story&nbsp;facility, which will be known as SV12x, will be built out in two phases and is expected to provide more than 28 megawatts (MW) of power capacity at full build out. SV12x is located at Equinix's Great Oaks data center campus in San Jose, California alongside four existing Equinix International Business ExchangeTM (IBX&#xAE;) data centers. The first phase of the facility is scheduled to be completed in Q2 2024.
Highlights/Key Facts:
<ul>
<li>This agreement represents the second joint venture between Equinix and PGIM Real Estate (see links below for details on the initial joint venture). &nbsp;</li>
<li>Combined with Equinix's existing hyperscale joint ventures in Europe, Asia-Pacific and elsewhere in the Americas, this new joint venture will bring the global xScale data center portfolio to more than $8 billion across more than 35 facilities, and an expected greater than 725 megawatts of power capacity when completed and fully constructed. &nbsp;</li>
<li>Equinix xScale data centers enable hyperscale companies to add core deployments to their existing access point footprints at Equinix IBX data centers, enabling their growth on a single platform that can immediately span more than 70 global metros and offer direct interconnection to an ecosystem of more than 10,000 customers. &nbsp;</li>
<li>Under the terms of the agreement, PGIM Real Estate will control an 80% equity interest in the joint venture, and Equinix will own the remaining 20% equity interest. 
<ul>
<li>PGIM Real Estate has been investing in the data center sector since 2013. This latest joint venture agreement with Equinix marks the first investment made through PGIM Real Estate's dedicated global data center strategy, managed on behalf of third-party clients, to invest exclusively in hyperscale facilities located across internet gateway markets in the U.S., Europe, and Asia-Pacific.</li>
</ul>
</li>
</ul>

Global

Equinix and PGIM Real Estate Enter Into $600M JV For First xScale Data Center In The U.S.

Investors with significant funds have taken a bearish position in Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>), a development that retail traders should be aware of.
This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in EQIX usually indicates foreknowledge of upcoming events.
Today, Benzinga's options scanner identified 19 options transactions for Equinix. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 5% being bullish and 94% bearish. Of all the options we discovered, 18 are puts, valued at $3,563,670, and there was a single call, worth $36,380.
<h3>What's The Price Target?</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $770.0 and $890.0 for Equinix, spanning the last three months.
<h3>Analyzing Volume &amp; Open Interest</h3>
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Equinix's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Equinix's whale trades within a strike price range from $770.0 to $890.0 in the last 30 days. 
<h3>Equinix Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712768488_0.png" alt="Options Call Chart" />
<h3>Largest Options Trades Observed:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th style="text-align: right;">Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>EQIX</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>05/17/24</td>
<td>$77.4</td>
<td>$71.3</td>
<td>$74.5</td>
<td>$850.00</td>
<td>$499.1K</td>
<td style="text-align: right;">136</td>
<td style="text-align: right;">50</td>
</tr>
<tr>
<td>EQIX</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>04/19/24</td>
<td>$85.2</td>
<td>$78.4</td>
<td>$82.0</td>
<td>$860.00</td>
<td>$410.0K</td>
<td style="text-align: right;">323</td>
<td style="text-align: right;">50</td>
</tr>
<tr>
<td>EQIX</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>04/19/24</td>
<td>$77.0</td>
<td>$73.6</td>
<td>$77.0</td>
<td>$860.00</td>
<td>$385.0K</td>
<td style="text-align: right;">323</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>EQIX</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>04/19/24</td>
<td>$105.0</td>
<td>$100.6</td>
<td>$105.0</td>
<td>$880.00</td>
<td>$304.5K</td>
<td style="text-align: right;">107</td>
<td style="text-align: right;">107</td>
</tr>
<tr>
<td>EQIX</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>04/19/24</td>
<td>$105.2</td>
<td>$101.8</td>
<td>$105.2</td>
<td>$880.00</td>
<td>$231.4K</td>
<td style="text-align: right;">107</td>
<td style="text-align: right;">47</td>
</tr>
</tbody>
</table>

<h3>About Equinix</h3>
Equinix operates 260 data centers in 71 markets worldwide. It generates 44% of total revenue in the Americas, 35% in Europe, the Middle East, and Africa, and 21% in Asia-Pacific. The firm has more than 10,000 customers, including 2,100 network providers, that are dispersed over five verticals: cloud and IT services, content providers, network and mobile services, financial services, and enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from interconnection. Equinix operates as a real estate investment trust.
In light of the recent options history for Equinix, it's now appropriate to focus on the company itself. We aim to explore its current performance.
<h3>Present Market Standing of Equinix</h3>
<ul>
<li>Trading volume stands at 313,903, with EQIX's price down by -3.46%, positioned at $773.54.</li>
<li>RSI indicators show the stock to be may be oversold.</li>
<li>Earnings announcement expected in 21 days.</li>
</ul>
<h3>Expert Opinions on Equinix</h3>
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $904.4.
<ul>
<li>Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Equinix with a target price of $950. </li>
<li>An analyst from Stifel downgraded its action to Buy with a price target of $960. </li>
<li>Maintaining their stance, an analyst from Morgan Stanley continues to hold a Equal-Weight rating for Equinix, targeting a price of $762. </li>
<li>Consistent in their evaluation, an analyst from Oppenheimer keeps a Outperform rating on Equinix with a target price of $950. </li>
<li>Reflecting concerns, an analyst from HSBC lowers its rating to Hold with a new price target of $900.</li>
</ul>
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Equinix options trades with real-time alerts from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.

Options

Markets

Market Whales and Their Recent Bets on EQIX Options

WIIM

CUBE

GLPI

Hannon Armstrong Sustainable Infrastructure Capital

HASI

LAMR

REXR

SBAC

VICI

Shares of REITs are trading lower as Treasury yields rise following hotter-than-expected March inflation data.

Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) has outperformed the market over the past 15 years by 5.57% on an annualized basis producing an average annual return of 18.37%. Currently, Equinix has a market capitalization of $74.65 billion. 
Buying $100 In EQIX: If an investor had bought $100 of EQIX stock 15 years ago, it would be worth $1,246.21 today based on a price of $788.91 for EQIX at the time of writing.
<h3>Equinix's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712241079_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Wayne Gretzky famously said that you miss 100% of the shots you don't take. But <a href="https://www.benzinga.com/news/21/05/21303010/wayne-gretzky-joining-turner-sports-nhl-coverage-spurns-espn">the hockey GOAT </a>has another saying that can also apply to markets and investing: skate where the puck is going, not where it is now.
AI and semiconductor stocks like NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and others have been the hottest stocks on the market throughout the last year amid increased demand for AI services and products. But you may feel like it's too late to buy semiconductor names to cash in on the AI boom.
Luckily, like most investing opportunities, there are ‘pick and shovel' plays or underlying companies that are set to benefit that aren't as overdone or talked about.
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="#62 Market Insights: Profitable Guidelines for Investors" width="500" height="281" src="https://www.youtube.com/embed/89TIN2twAVg?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Also Read: <a href="https://www.benzinga.com/markets/equities/24/03/38016310/morgan-stanleys-top-fund-manager-says-this-utility-stock-could-win-big-from-ai-demands">Morgan Stanley&#8217;s Top Fund Manager Says This Utility Stock Could Win Big From AI Demands</a>
This idea was a core theme in this week's episode of &#8220;<a href="https://www.benzinga.com/razreport">The Raz Report</a>&#8221; podcast, a show featuring Benzinga's co-founder Jason Raznick.
Raznick and I sat down and talked about his journey into trading, mistakes he made early on and why it's so important to find the often-overlooked opportunities by analyzing themes and moving where the puck is going, as Gretzky would say.
"I try to look at trends in the market," Raznick said. "The EV market makes sense to me. The Ozempic plays made sense to me&#8230; 9/11, when that happened, the security plays, I was investing in drones before anyone was talking about drones."
Raznick's point is that the derivative plays of emerging trends aren't usually talked about as much among investors and throughout financial media, which can create lower prices and more profit opportunities.
For example, while Nvidia and Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) are each up more than 200% in the last year, other companies that could benefit from the AI boom like data infrastructure providers Digital Realty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) and Equinix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) are up about 50% and 10% in the last year respectively. <a href="https://www.youtube.com/watch?v=89TIN2twAVg">Click here</a> to check out part one of Raznick's stock series, where he will share tips, trade ideas and more throughout the episodes. 
Now Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38071383/bitcoin-etfs-traded-111b-in-march-2-new-etfs-could-mean-the-action-gets-even-wilder">Bitcoin ETFs Traded $111B In March: 2 New ETFs Could Mean The Action Gets Even Wilder</a>
Photo: Benzinga

How To Beat The Herd: Finding Stock Opportunities Where Others Aren't Looking

Equinix's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NYSE">EQIX</a>) short percent of float has risen 30.82% since its last report. The company recently reported that it has 1.39 million shares sold short, which is 1.91% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.65 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Equinix Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1711722613_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Equinix has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Equinix's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Equinix's peer group average for short interest as a percentage of float is 4.09%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Peering Into Equinix's Recent Short Interest

In the preceding three months, 12 analysts have released ratings for Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>), presenting a wide array of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Equinix, presenting an average target of $816.42, a high estimate of $960.00, and a low estimate of $91.00. Surpassing the previous average price target of $758.00, the current average has increased by 7.71%.
<img src="https://www.benzinga.com/files/images/story/2024/1711656050_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive Equinix. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Simon Flannery</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$762.00</td>
<td>$767.00</td>
</tr>
<tr>
<td>Phani Kanumuri</td>
<td>HSBC</td>
<td>Announces</td>
<td>Hold</td>
<td>$900.00</td>
<td>-</td>
</tr>
<tr>
<td>Timothy Horan</td>
<td>Oppenheimer</td>
<td>Raises</td>
<td>Outperform</td>
<td>$950.00</td>
<td>$875.00</td>
</tr>
<tr>
<td>Anthony Hau</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$950.00</td>
<td>$915.00</td>
</tr>
<tr>
<td>Erik Rasmussen</td>
<td>Stifel</td>
<td>Maintains</td>
<td>Buy</td>
<td>$960.00</td>
<td>-</td>
</tr>
<tr>
<td>Brendan Lynch</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$91.00</td>
<td>$79.00</td>
</tr>
<tr>
<td>Jonathan Atkin</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$950.00</td>
<td>$855.00</td>
</tr>
<tr>
<td>Eric Luebchow</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$825.00</td>
<td>$800.00</td>
</tr>
<tr>
<td>Ari Klein</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$925.00</td>
<td>$910.00</td>
</tr>
<tr>
<td>Brendan Lynch</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$781.00</td>
<td>$788.00</td>
</tr>
<tr>
<td>Brendan Lynch</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$788.00</td>
<td>$720.00</td>
</tr>
<tr>
<td>Anthony Hau</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$915.00</td>
<td>$871.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Equinix. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Equinix compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Equinix's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Equinix's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/EQIX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Equinix analyst ratings.</a>
<h2>Discovering Equinix: A Closer Look</h2>
Equinix operates 260 data centers in 71 markets worldwide. It generates 44% of total revenue in the Americas, 35% in Europe, the Middle East, and Africa, and 21% in Asia-Pacific. The firm has more than 10,000 customers, including 2,100 network providers, that are dispersed over five verticals: cloud and IT services, content providers, network and mobile services, financial services, and enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from interconnection. Equinix operates as a real estate investment trust.
<h3>Equinix: A Financial Overview</h3>
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Equinix's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 12.81%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.
Net Margin: Equinix's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 10.78%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Equinix's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.87%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.71%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Equinix's debt-to-equity ratio is below the industry average. With a ratio of 1.4, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>Analyst Ratings: What Are They?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Expert Outlook: Equinix Through The Eyes Of 12 Analysts

Morgan Stanley analyst Simon Flannery maintains Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) with a Equal-Weight and lowers the price target from $767 to $762.

Morgan Stanley Maintains Equal-Weight on Equinix, Lowers Price Target to $762

The focus of the investigation is to whether the Company issued false and/or misleading statements and/or did not disclose information pertinent to investors.

Wolf Haldenstein Adler Freeman & Herz Investigates Equinix For Potential Violations Of Federal Securities Laws

In a statement, the company said, "We take seriously our obligations of transparency and accuracy in our financial reporting. We believe we have earned the trust of our investors - and all our stakeholders - by reliably delivering on our commitments with integrity and meeting the requirements of our customers, as we have demonstrated throughout our 25-year history."

Equinix Announces Independent Investigation By Audit Committee Into Matters Raised In Recent Short Seller Report And Revealed Receiving A Subpoena From U.S Attorney's Office For Northern District Of California, Intending To Fully Cooperate While Emphasizing Long-Standing Commitment To Financial Transparency And Integrity, And Expressing Confidence In Its Business Value And Customer Relevance Amid Digital Transformations

Editor&#8217;s Note: The article has been updated to include Equinix&#8217;s response to the accusations made by Hindenburg Research.
Short seller Hindenburg research has a new company <a href="https://www.benzinga.com/quote/EQIX">in its crosshairs</a>.
What To Know: Hindenburg has targeted data center firm&nbsp;Equinix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) in a new <a href="https://hindenburgresearch.com/equinix/">short report</a> published on Wednesday and announced a new short position against the company. 
The short seller claims Equinix inflated its profitability metrics and pitched investors an &#8220;AI pipe dream,&#8221; while insiders backed out of the stock. 
In a statement to Benzinga, Equinix indicated that they are reviewing the allegations made by Hindenburg and will withhold further comment until the evaluation is completed.
The company stated, &#8220;We remain confident that our distinctive advantages create significant long-term opportunity for Equinix and continue to see Equinix as highly relevant to customers as they pursue their digital transformation agendas.&#8221;
Equinix shares fell as much as 7% in early trading Wednesday before bouncing back. The stock was down approximately 2% at the time of publication. 
From Last Week: <a href="https://www.benzinga.com/news/24/03/37711666/are-palantir-ceos-cocaine-comments-a-projection-legendary-short-sellers-clap-back-at-critiques-flag">Are Palantir CEO&#8217;s Cocaine Comments A &#8216;Projection?&#8217; Legendary Short Sellers Clap Back At Critiques, Flag Insider Trade Data</a>
The Details: Hindenburg alleged that Equinix has used accounting tricks to boost its adjusted funds from operations (AFFO). The short seller claims the company reclassified its capital expenditures reporting to make it appear more profitable than it is.
&#8220;Our investigation found that Equinix (i) bases its executive bonus compensation on the company's AFFO metric (ii) then manipulates its accounting for maintenance CapEx to overstate this AFFO figure, resulting in the illusion of vastly higher AFFO, higher executive bonus compensation and an inflated stock price,&#8221; the short seller said. 
Hindenburg believes the alleged capital expenditures manipulation has boosted Equinix&#8217;s AFFO by about $3 billion cumulatively since 2015. Meanwhile, insiders have cash out more than $327 million in company stock since 2019, the short seller said.
The firm&#8217;s investigation involved 37 former employees of Equinix, as well as several industry experts and competitors. Equinix has over 10,000 customers, ranging from small businesses to large cloud providers like Amazon, Microsoft and Google.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37848854/fed-interest-rate-cut-bets-skate-on-thin-ice-markets-on-edge-fomc-meeting-preview">Fed Interest Rate Cut Bets Skate On Thin Ice, Markets On Edge: FOMC Meeting Preview</a>
Photo: courtesy of Equinix.

Movers

Hindenburg Research Targets Equinix In New Short Report Claiming Data Center Firm Is Selling 'AI Pipe Dream' (UPDATED)

HSBC analyst Phani Kanumuri downgrades Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) from Buy to Hold and announces $900 price target.

Downgrades

HSBC Downgrades Equinix to Hold, Announces $900 Price Target

It&#8217;s a quiet session on Wall Street Wednesday as investors remain on the sidelines, awaiting further clues on monetary policy front with the Federal Open Market Committee (FOMC) meeting scheduled for 2 p.m. ET. Fed Chair Jerome Powell is set to speak shortly after the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37848854/fed-interest-rate-cut-bets-skate-on-thin-ice-markets-on-edge-fomc-meeting-preview">statement at 2:30 p.m.</a>
While rates are expected to remain unchanged at 5.25%-5.5%, the spotlight will be focused on updates to Fed economic projections, particularly the dot plot, which will unveil the potential trajectory of rate cuts in the future.
Market participants and economists anticipate the Fed will adhere to a strategy of three rate cuts for 2024, but there are concerns of a potential hawkish shift, suggesting fewer projected rate cuts following recent inflation surprises.
At midday trading in New York, both equity indices and Treasury yields showed flat performances. Sectors were mostly unaffected by minor fluctuations, although energy stocks experienced some pullbacks after recent gains due to a 1.9% easing in oil prices.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) made an attempt to rebound, rising 3% to $63,600, after dropping as low as $60,000 overnight.
<h2 class="wp-block-heading">Wednesday&#8217;s Performance In Major Equity Indices, ETFs</h2>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>202.24</td>
<td>0.1 %</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,181.36</td>
<td>0.1%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,128.00</td>
<td>0.0%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,027.15</td>
<td>0.0%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was flat at $515.71, the SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) held steady at $391.07 and the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) held steady at $438.80, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>. 
Among sectors, the Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) was the top performer for the day, up 0.6%, while the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and the Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) were the laggards, both down 0.6%. 
<h2 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h2>
<ul>
<li>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) fell marginally by 0.3% despite the Biden administration granting the chipmaker up to $8.5 billion to fund chip plants in Arizona, New Mexico, Ohio and Oregon. </li>
<li>Spotify Technology S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) rose nearly 1.5% after Bank of America raised the price target for the streaming music giant from $265 to $315. </li>
<li>Crocs Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CROX#NASDAQ">CROX</a>) rallied 3% after Bank of America raised the price target from $140 to $150. </li>
<li>Tencent Music Entertainment Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TME#NYSE">TME</a>) rose over 4% after Goldman Sachs upgraded the stock from Neutral to Buy. </li>
<li>Spirit AeroSystems (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>) rocketed by nearly 7% after Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>)&#8217;s CEO Brian West hinted at the potential recombination of the two entities.</li>
<li>Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) surged 4% after reports that the restaurant chain&#8217;s board had given the green light to a 50-for-1 stock split.</li>
<li>Equinix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) fell over 4% following the publication of a report by short-seller Hindenburg that alleges accounting manipulations. </li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37850165/investor-optimism-hits-2-year-high-yet-division-over-ai-magnificent-7-bubble-emerge">Investor Optimism Hits 2-Year High, Yet Division Over AI, Magnificent 7 Bubble Emerges: Onset Of The Great Rotation?</a>
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Oppenheimer analyst Timothy Horan maintains Equinix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) with a Outperform and raises the price target from $875 to $950.

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Artificial intelligence (AI) is having a Bitcoin (<a href="https://investorplace.com/cryptocurrency/usd-btc/">USD-BTC</a>) moment and the situation could rapidly deteriorate for some of the biggest companies in this rapidly evolving technology.



Bitcoin miners are energy intensive. Their thousands of computers generate excess heat that must be cooled and dissipated. The U.S. Energy Information Administration (EIA) estimates miners <a href="https://www.eia.gov/todayinenergy/detail.php?id=61364#:~:text=Our%20preliminary%20estimates%20suggest%20that,2.3%25%20of%20U.S.%20electricity%20consumption.&amp;text=This%20additional%20electricity%20use%20has,cost%2C%20reliability%2C%20and%20emissions.">consume as much as 2.3%</a> of all electricity produced in the U.S. It threatened to cause the segment to crash because of the rising costs. AI is in a similar situation but it could mushroom exponentially very fast.



In 2021, before the real explosion of AI, the EIA said data centers, one of the biggest AI users, were consuming about 2% of all the electricity produced. It noted they are &ldquo;one of the most energy-intensive building types, consuming 10 to 50 times the energy per floor space of a typical commercial office building.&rdquo;&nbsp;



And AI is an energy hog. The International Energy Agency (IEA) forecasts that data centers&rsquo; <a href="https://iea.blob.core.windows.net/assets/6b2fd954-2017-408e-bf08-952fdd62118a/Electricity2024-Analysisandforecastto2026.pdf">total electricity consumption</a> could reach more than 1,000 terawatt-hours (TWh) in 2026, or &ldquo;roughly equivalent to the electricity consumption of Japan.&rdquo;



In the U.S. alone, Boston Consulting Group estimates AI-powered data centers will consume as much as 7.5% of electric output by 2030, triple what it was in 2022.



The energy crisis is real because there is not enough capacity available to meet projected demand. Amazon (NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/">AMZN</a>) is one of the largest data center operators for its cloud services business. CEO Andy Jassy <a href="https://finance.yahoo.com/news/amazon-ceo-andy-jassy-says-091737325.html">told Fortune</a>, &ldquo;These large language models are so power hungry, and there&rsquo;s just not enough energy right now.&rdquo; The e-commerce giant recently purchased a <a href="https://www.ans.org/news/article-5842/amazon-buys-nuclearpowered-data-center-from-talen/">nuclear-powered data center</a> to help offset its electricity demands.



Amazon operates 125 data centers globally but just 24 in the U.S. Below are three other giant data center operators at risk because of AI&rsquo;s alarming energy consumption.



<h2>Equinix (EQIX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/eqix-stock-1-300x169.jpg" alt="corporate building with Equinix (EQIX) logo on it"><div>Source: Ken Wolter / Shutterstock.com</div></div>Equinix (NASDAQ:<a href="https://investorplace.com/stock-quotes/eqix-stock-quote/">EQIX</a>) is a real estate investment trust (REIT) that owns and operates 260 data centers in 71 major metropolitan areas around the globe. It understands the all-consuming nature of artificial intelligence in data centers. Equinix has been <a href="https://www.datacenterdynamics.com/en/news/equinix-uses-ai-to-increase-energy-efficiency-at-frankfurt-dc-by-9/">using AI-based software</a> to reduce by 9% energy consumption at a Frankfurt data center and plans to roll it out to its other Frankfurt data centers. It was an essential response as Germany introduced an aggressive new law to increase energy efficiency.&nbsp;



If it wants to fulfill its expansion dreams, Equinix will need to deploy similar strategies elsewhere. The REIT wants to <a href="https://www.datacenterfrontier.com/hyperscale/article/33037300/equinix-will-bring-xscale-hyperscale-data-centers-to-the-us">build out its xScale data centers</a> for hyperscale usage. Hyperscalers are supersized cloud services providers like Amazon and Alphabet&lsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/goog-stock-quote/">GOOG</a>)(NASDAQ:<a href="https://investorplace.com/stock-quotes/googl-stock-quote/">GOOGL</a>) Google. These are the biggest drivers of AI demand as they seek out AI accelerators to boost their capacity. Google says its AI accounts for almost 15% of its data centers&rsquo; energy usage.



Without money-saving initiatives like this, Equinix could find itself pinched by growing demand of its xScale facilities.



<h2>Microsoft (MSFT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/10/msft1600e-300x169.jpg" alt="The Microsoft (MSFT) logo on a corporate office building during the day time."><div>Source: The Art of Pics / Shutterstock.com</div></div>Although it&rsquo;s understood Microsoft&lsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) need for data centers for its fast-growing Azure cloud service, what might not be as apparent is just how many the tech giant owns and operates itself.&nbsp;



According to industry site Dgtl Infra, Microsoft <a href="https://dgtlinfra.com/microsoft-azure-data-center-locations/">operates 300 physical data centers</a> in 64 regions globally. It is in the process of adding 15 more regions to its constellation, with each region having from one to three individual data centers. Together, Microsoft&rsquo;s data centers span over 75 million square feet.



Microsoft needs this web of connectivity as it is one of the most prominent companies diving head-first into AI. Beyond the scalability AI provides Azure, the tech stock has integrated it throughout all of its products and services, including Bing, Microsoft 365, Teams, Dynamics 365, OneDrive, LinkedIn, Skype, Xbox and Outlook.



Because every facet of Microsoft&rsquo;s business is tied to AI, the power demands it places on the grid are excessive. It also hints at the next pain point for AI: water consumption, an equally scarce resource. Google&rsquo;s data centers used 20% more water in 2022 than in 2021 while <a href="https://e360.yale.edu/features/artificial-intelligence-climate-energy-emissions">Microsoft&rsquo;s water usage</a> soared 34%.



<h2>Digital Realty Trust (DLR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/08/shutterstock_1696920283-300x169.jpg" alt="A hallway with server racks on either side in a data center"><div>Source: dotshock / Shutterstock</div></div>Digital Realty Trust (NYSE:<a href="https://investorplace.com/stock-quotes/dlr-stock-quote/">DLR</a>) is the world&rsquo;s largest data center REIT with 308 locations in 25 countries. As companies continue to transition their data to the cloud, they increasingly turn to DLR to house it. Among its <a href="https://www.sec.gov/Archives/edgar/data/1297996/000155837023016866/dlr-20231026xex99d1.htm#EarningsRelease">biggest customers</a> are Oracle (NYSE:<a href="https://investorplace.com/stock-quotes/orcl-stock-quote/">ORCL</a>), IBM (NYSE:<a href="https://investorplace.com/stock-quotes/ibm-stock-quote/">IBM</a>) and hyperscaler Meta Platforms (NASDAQ:<a href="https://investorplace.com/stock-quotes/meta-stock-quote/">META</a>).



As much of the problem as AI is, Digital Realty sees it also being part of the solution. DLR says AI can measure and reduce consumption significantly by intuitively deploying resources at appropriate times. In a 2019 <a href="https://www.reit.com/news/articles/digital-realty-turns-to-ai-to-maximize-data-center-efficiency">pilot program using its Apollo AI platform</a>, DLR tested conservation methods at two European facilities. It rolled it out to 14 more soon after. Combined, Digital Realty was able to save about 18 gigawatt-hours (GWh) of savings.



The REIT offers hope that even as AI drives immense demand on energy resources, it can offset that by increasing efficiency. But whether that is possible on a global scale as AI usage increases exponentially remains to be seen.



On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L&rsquo;Express, and numerous other news outlets.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/3-stocks-most-at-risk-of-ais-alarming-energy-consumption/">3 Stocks Most at Risk of AI&#8217;s Alarming Energy Consumption</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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Press Releases

ROSEN, LEADING INVESTOR COUNSEL, Encourages Equinix, Inc. Investors to Inquire About Securities Class Action Investigation - EQIX

Legal

Equinix (EQIX) Falls After Disclosing Internal Investigation and DOJ Subpoena - Hagens Berman

EQIX INVESTOR NOTICE: ROSEN, A HIGHLY RECOGNIZED LAW FIRM, Encourages Equinix, Inc. Investors to Inquire About Securities Class Action Investigation – EQIX

Equinix and PGIM Real Estate Enter Into $600 Million JV for First xScale® Data Center in the U.S.

ROSEN, A TRUSTED AND LEADING LAW FIRM, Encourages Equinix, Inc. Investors to Inquire About Securities Class Action Investigation – EQIX

EQIX INVESTOR NOTICE: ROSEN, NATIONAL TRIAL LAWYERS, Encourages Equinix, Inc. Investors to Inquire About Securities Class Action Investigation – EQIX