Equinix Stock: Data Center Giant Delivers Returns But Faces Risks From Allegations and Competition
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Operates 260 data centers in 33 countries that provide infrastructure for major AI services like AWS, Azure, Google Cloud. Has delivered 480% returns over past decade.
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Seeing tremendous demand from hyperscalers for its "xScale" data centers. Utilization rates over 95% and committed to adding over 800 more megawatts.
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Growing revenue and AFFO at 7-10% rate annually. Has 49% AFFO payout ratio and 10.5% 5-year dividend CAGR. Stock trades at reasonable P/AFFO multiple.
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Accused by short seller Hindenburg of financial manipulation to boost executive bonuses, but accusations disputed by analysts. Stock drop presents buying opportunity.
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Major player in secular growth AI industry, but faces risks like controversy over financials, competitive threats, regulatory changes. Overall, attractive for income growth investors.