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Here's How Much You'd Have If You Invested $1000 in Equinix a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Equinix (EQIX - Free Report) ten years ago? It may not have been easy to hold on to EQIX for all that time, but if you did, how much would your investment be worth today?
Equinix's Business In-Depth
With that in mind, let's take a look at Equinix's main business drivers.
Incorporated on Jun 22, 1998, Equinix, Inc. is a global digital infrastructure company. Its U.S. headquarters is in Redwood City, CA. The company has two more regional headquarters in Amsterdam and Hong Kong. It became a real estate investment trust (REIT) in taxable year 2015.
Platform Equinix combines a global footprint of International Business Exchange or IBX data centers, interconnection solutions, and edge services for deploying network. It also includes unique business, digital ecosystems, and expert consulting and support.
The company operates in three reportable segments comprised of the Americas, Middle East and Africa (EMEA) and Asia-Pacific geographic regions.
Through its 211 IBX data centers across five continents, customers can directly interconnect critical traffic exchange requirements. These customers rely on Equinix's IBX centers for their critical interconnection relationships. Equinix has a direct sales force and a channel marketing program.
Equinix’s business is based on a recurring revenue model comprising colocation, related interconnection and managed IT infrastructure services. These services are considered to be recurring, as customers are billed at fixed rates on a recurring basis through the life of the respective contracts, which generally run for one to three years.
Non-recurring revenues comprise installation services related to initial deployment and professional services. Also, revenues from customer settlements (fees paid for terminating contracts before expiry) are treated as contract modifications. These services are typically billed only upon the completion of the installation or performance of services.
Note: All EPS numbers presented in this report represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Equinix ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $8,006.02, or a 700.60% gain, as of June 29, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 230.89% and gold's return of 13.18% over the same time frame.
Analysts are forecasting more upside for EQIX too.
Shares of Equinix have outperformed the real estate market in the past three months. Recently, the company announced an International Business Exchange (“IBX”) data center in Silicon Valley, located at its Great Oaks campus in San Jose, with an investment of $142 million. The new facility is named SV11 and is scheduled to open on Jun 30, 2021. Amid the rising need for digital infrastructure and cloud adoption, Equinix is seeing an increase in inter-connected data-center space demand. However, Equinix’s expansion moves require huge capital outlays. Given its significant debt obligations, such efforts are likely to increase financial obligations and impact profitability. A global presence exposes it to foreign-currency exchange-rate volatility, while competition from carrier-neutral data centers adds to the company’s woes.
The stock has jumped 8.39% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Equinix a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Equinix (EQIX - Free Report) ten years ago? It may not have been easy to hold on to EQIX for all that time, but if you did, how much would your investment be worth today?
Equinix's Business In-Depth
With that in mind, let's take a look at Equinix's main business drivers.
Incorporated on Jun 22, 1998, Equinix, Inc. is a global digital infrastructure company. Its U.S. headquarters is in Redwood City, CA. The company has two more regional headquarters in Amsterdam and Hong Kong. It became a real estate investment trust (REIT) in taxable year 2015.
Platform Equinix combines a global footprint of International Business Exchange or IBX data centers, interconnection solutions, and edge services for deploying network. It also includes unique business, digital ecosystems, and expert consulting and support.
The company operates in three reportable segments comprised of the Americas, Middle East and Africa (EMEA) and Asia-Pacific geographic regions.
Through its 211 IBX data centers across five continents, customers can directly interconnect critical traffic exchange requirements. These customers rely on Equinix's IBX centers for their critical interconnection relationships. Equinix has a direct sales force and a channel marketing program.
Equinix’s business is based on a recurring revenue model comprising colocation, related interconnection and managed IT infrastructure services. These services are considered to be recurring, as customers are billed at fixed rates on a recurring basis through the life of the respective contracts, which generally run for one to three years.
Non-recurring revenues comprise installation services related to initial deployment and professional services. Also, revenues from customer settlements (fees paid for terminating contracts before expiry) are treated as contract modifications. These services are typically billed only upon the completion of the installation or performance of services.
Note: All EPS numbers presented in this report represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Equinix ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $8,006.02, or a 700.60% gain, as of June 29, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 230.89% and gold's return of 13.18% over the same time frame.
Analysts are forecasting more upside for EQIX too.
Shares of Equinix have outperformed the real estate market in the past three months. Recently, the company announced an International Business Exchange (“IBX”) data center in Silicon Valley, located at its Great Oaks campus in San Jose, with an investment of $142 million. The new facility is named SV11 and is scheduled to open on Jun 30, 2021. Amid the rising need for digital infrastructure and cloud adoption, Equinix is seeing an increase in inter-connected data-center space demand. However, Equinix’s expansion moves require huge capital outlays. Given its significant debt obligations, such efforts are likely to increase financial obligations and impact profitability. A global presence exposes it to foreign-currency exchange-rate volatility, while competition from carrier-neutral data centers adds to the company’s woes.
The stock has jumped 8.39% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021; the consensus estimate has moved up as well.