Elliott Investment Management Doubles Down on Equinix, Boosting Hope for a Turnaround

Billionaire Paul Singer's Elliott Investment Management has raised its stake in Equinix (EQIX), a data center-focused REIT, to become one of its top-10 shareholders. This comes as the company has fallen 15% this year due to margin compression and investor skepticism over its next phase of growth. Despite a valuation of 23.7x forward earnings and 8.9x price-sales, Equinix posted strong Q1 2025 numbers, raising full-year revenue and adjusted EBITDA guidance. The company's dividend yield is 2.3%, offering steady income and potential for long-term capital appreciation.

Billionaire Paul Singer's Elliott Investment Management has significantly increased its stake in Equinix (EQIX), a leading data center-focused REIT, positioning itself among the company's top 10 shareholders. This move comes as Equinix's shares have declined by more than 16% this year, falling to a market value of approximately $76 billion. The stock experienced its most significant one-day drop since March 2020 following an analyst day where the company disclosed higher-than-expected capital expenditures.

Elliott's growing influence in Equinix is part of a broader trend of activist investors targeting large technology companies. The firm has been building its position in Equinix since the analyst day, according to sources with knowledge of the matter. As of the latest filings, Elliott holds approximately 150,000 shares, or about 0.2% of the company.

The activist firm may advocate for additional margin improvements, a potential buyback, or adjustments to Equinix's recently announced capital expenditure plan. Engagement between Elliott and Equinix is collaborative so far. A representative for Elliott declined to comment, while a spokesperson for Equinix could not immediately be reached for comment [1].

Equinix's shares have faced mixed analyst ratings, with targets being cut by BMO Capital Markets to $850 and raised to a "strong-buy" rating by New Street Research. Despite the market turmoil, Equinix posted strong Q1 2025 numbers, raising full-year revenue and adjusted EBITDA guidance. The company's dividend yield is 2.3%, offering steady income and potential for long-term capital appreciation.

The adoption of artificial intelligence has driven demand for data center space, with major players like Amazon Web Services and Google Cloud Platform competing for real estate. However, Equinix and peers such as Prologis Inc. and Digital Realty Trust Inc. have faced higher project financing costs due to elevated interest rates [1].

Elsewhere, Elliott owns UK-based Ark Data Centres through its private equity arm, while senior portfolio manager Jason Genrich sits on the board of another REIT, Crown Castle Inc. [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-21/activist-elliott-boosts-stake-in-data-center-reit-equinix