What can investors expect from EQIX in 2025?
3/28/2025 08:25pm
**Equinix (EQIX) faces a challenging year in 2025**, as indicated by the bearish trend in the stock and the below-par financial guidance. Here's what investors can expect:
1. **Financial Performance**: Equinix projects a full-year 2025 revenue of $9.033 billion to $9.133 billion, which is below the consensus estimate of $9.45 billion. The adjusted EBITDA is expected to be $4.386 billion to $4.466 billion, with the midpoint trailing the Visible Alpha estimate. The AFFO per share for the year is expected to be $36.69 to $37.51, which is above the expected figure.
2. **Stock Performance**: The stock's current trend is bearish, having been so for the past 32 days. The probability of trend continuation is 60%, with 31 days showing a clear trend and 1 day of unclear movement. The stock is positioned between narrow and wide support and resistance levels, indicating a potential for price movement but also limited upward space.
3. **Market Sentiment**: Despite a solid balance sheet and regular dividend payouts, competition from other data centers and high interest expenses are concerns. The stock has underperformed the Nasdaq Composite, dropping 3.8% over the past 52 weeks compared to the index's 12.7% increase.
4. **Strategic Positioning**: Equinix is well-positioned to benefit from robust data center demand and is expected to see total revenues increase by 3-4% in 2025. The company's recurring revenue model and strategic expansions are encouraging, and it is actively expanding its data center capacity.
5. **Investor Considerations**: Investors should consider the potential for growth in the data center sector, but also be aware of the competitive pressures and financial constraints facing Equinix. The company's participation in investor conferences could enhance market perception and investor confidence.
In conclusion, while Equinix has a solid foundation in the digital infrastructure sector and is expected to see revenue growth, the below-par financial guidance and competitive pressures suggest that investors should approach with caution. The stock's performance is likely to be influenced by these factors, with potential for modest growth but also limited upward movement.