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Investing.com - Equinix (NASDAQ:EQIX), the $77.36 billion market cap data center company, saw its shares gain to $789.39 Monday following a Bloomberg report that activist investor Elliott Investment Management has increased its ownership stake. According to InvestingPro analysis, the company maintains a GOOD financial health score, suggesting strong operational fundamentals.
According to the report, Elliott has become one of Equinix’s top-10 investors, suggesting the firm now owns more than 1.2% of the company’s shares. This represents a significant increase from the 150,000 shares Elliott disclosed in a 13-F filing in mid-May, prior to Equinix’s June 25 analyst day. The stock has experienced a challenging year, with a -16.64% year-to-date return.
While Elliott’s specific intentions remain unclear, Bloomberg indicated the activist fund might push for further margin expansion, share repurchases, or adjustments to Equinix’s capital expenditure plans. The article noted that engagement between Equinix and Elliott has been collaborative.
Evercore ISI maintained its Outperform rating and $1,035.00 price target on Equinix, viewing Elliott’s increased stake as a positive development given the activist investor’s track record of management engagement. Analyst targets currently range from $798 to $1,200, with detailed analysis available on InvestingPro.
Equinix stock has declined approximately 12% since its analyst day, when the company reduced its long-term adjusted funds from operations (AFFO) per share growth outlook to 5-9% for 2025-2029, down from its previous target of 7-10%. Investors should note that Equinix offers a 2.41% dividend yield, and the company is scheduled to report earnings in 9 days on July 30.
In other recent news, Equinix has reported better-than-expected financial results for the first quarter of 2025, though some key performance indicators fell short of expectations. The company has updated its long-term guidance through 2029, projecting organic revenue growth of 7-10% and EBITDA margins of 52%. Equinix has also raised its full-year 2025 outlook for revenue, EBITDA, and AFFO per share. Guggenheim has initiated coverage on Equinix with a Buy rating, highlighting the company’s strong position in the data center sector and setting a price target of $933. TD Cowen has maintained its Buy rating and $974 price target, citing Equinix’s potential in AI inference growth. Meanwhile, Truist Securities has lowered its price target to $904, reflecting near-term earnings pressure due to increased capital expenditures. Equinix has also announced key leadership changes, appointing Arquelle Shaw as President of the Americas and Shane Paladin as Chief Customer and Revenue Officer. These appointments are part of Equinix’s strategy to strengthen its management team and drive growth across its operations.
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