From MoneyWeek · · 50s
Investors Should Pull Plug on Equinix
Equinix shares may drop as AI demand slows and valuation too high.
In brief
Equinix shares may drop as AI demand slows and valuation too high. Investors should sell Equinix shares due to slowing AI data center demand and high valuation. Originally reported by MoneyWeek.
Equinix Overview
Equinix is a real-estate investment trust that rents data centers to tech companies.
AI Data Center Demand
Big Tech needs data centers to train ai models but demand may slow due to ai project failures.
Equinix Valuation Concerns
Equinix trades at 50 times 2027 earnings despite low growth and 6% return on capital employed.
Share Price Trend
Equinix shares have fallen below 50- and 200-day moving averages over six months.
Shorting Recommendation
Short Equinix at $953 with target $1,283 for $990 downside.
The short version
Investors should sell Equinix shares due to slowing AI data center demand and high valuation.
