Equinix (EQIX) stock was $150 yesterday and just opened at $168 today. How did this stock get to $150 without us noticing it? What is Equinix?
Grand Central Station of the Internet
Equinix has big data centers that other companies use to put data storage equipment (like servers) in and store data. Data center companies provide space, air conditioning electricity and most importantly high speed Internet access to customers. Like a self-storage unit for Internet equipment.
This company sets itself apart by having 4000 customers and alowing one customer’s network to connect to anothers. Equinix is like Grand Central Station for the Internet. This is the definition of cloud computing.
Equinix customer list is so good it’s like something somebody made up. Google, Microsoft, Amazon.com, GE, Verizon, etc, etc, etc. 4000 customers. These networks are tied to each other through Equinix, so you’re probably traveling through EQIX’s “stations” all the time without even knowing it. Maybe right now. DavidSharek.com is hosted at GoDaddy.com, which has a history of doing business with Equinix.
I think the fact everybody can connect to each other on the Equinix global network (called IBX or International Business Exchange) is the key to Equinix’s success.
Sharek’s Take
EQIX is a stock to keep an eye on. Profits are expected to climb from $1.72 last year to $2.53 this year, $3.55 in 2013 and $4.82 in 2014 — this is certainly one of the fastest growing growth stocks around. But with a P/E of 64 the stock is priced high. At this point I need to do more research on this stock, but now that I know what Equinix is, EQIX is certainly on my radar.
