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Investing.com -- Equinix Inc (NASDAQ:EQIX) stock rose 2.9% following a report from Bloomberg saying activist investor Elliott Investment Management has increased its stake in the data center operator and is advocating for measures to boost its share price.
The activist firm has built a position that makes it one of Equinix’s top 10 shareholders, according to people familiar with the matter. While the exact size of Elliott’s holding remains undisclosed, regulatory filings show the firm owns at least 150,000 shares, representing approximately 0.2% of the California-based company.
Elliott has reportedly been accumulating its position in Equinix since the company’s analyst day last month, when the data center operator revealed higher-than-expected capital expenditures that triggered the stock’s worst one-day decline since 2020.
Sources indicate that Elliott may push for several changes at Equinix, including margin improvements, a potential share buyback program, or adjustments to the recently announced capital expenditure plan. The engagement between Elliott and Equinix management is described as collaborative so far.
Equinix shares have fallen more than 16% year-to-date, giving the company a market capitalization of approximately $76 billion. Today’s stock movement comes as investors react to the potential for shareholder-friendly changes that could unlock value in the company.
Elliott has not yet responded to Investing.com’s request for comment.
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