Back to top

Image: Bigstock

Equinix (EQIX) Expands Bare Metal Presence, Adds Capabilities

Read MoreHide Full Article

Equinix, Inc. (EQIX - Free Report) fortifies Equinix Metal by expanding the availability of its bare-metal service in 18 global metros. Moreover, the company has added new networking features to support hybrid multi-cloud architecture, launched managed appliance as a Service solution and made the certification of new software integrations available on Equinix Metal.

Specifically, Equinix Metal now has an expanded presence, with availability in 18 global metros across the Americas, EMEA and the Asia Pacific regions.

The company has also added a managed appliance capability by launching a range of as-a-Service partner-infrastructure solutions on the Equinix platform. This will enable OEM, hybrid cloud, storage, hyperconverged and other specialty hardware vendors to provide fully operated, as-a-Service solutions

The company has partnered with Dell Technologies and Pure Storage for the service offering. This also complements Equinix's existing interconnection, networking and compute services to offer a wider selection of Infrastructure as-a-Service solutions to more than its 10,000 global customers.

This aside, the company has enhanced the networking of the Equinix Metal platform to support all of Equinix Fabric integration options. This integration will offer Equinix Metal customers speedy and safe connectivity to more than 10,000 networks, enterprises, clouds and SaaS platforms.

Further, the company announced the availability of new software integrations on Equinix Metal. This will support hybrid multi-cloud infrastructures.

Per management, “by expanding Equinix Metal globally, adding key networking capabilities and collaborating with leading hardware and software vendors to offer as a Service solutions, we're helping customers, partners and the ecosystem at large create their digital advantage faster."

Notably, such advancements strengthen the company’s position as a digital infrastructure company. Additionally, Equinix plans to add more data centers in the coming quarters to satisfy the growing demand for colocation and interconnection services.

Although such moves are strategic fits, it requires huge capital outlays and given the company’s significant debt obligations, these capital-intensive activities are concerning.  Growing debt burden will likely adversely impact the operating results as interest expenses would go up.

Equinix currently carries a Zacks Rank #3 (Hold). In the past six months, the company’s shares have declined 18.7% against the real estate market’s rally of 12.1%.


Stocks to Consider

Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for 2021 FFO per share has moved up 2.5% to $5.66 in the past month. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

JBG SMITH Properties (JBGS - Free Report) Zacks Consensus Estimate for 2021 FFO per share has been unchanged at $1.48 in a month’s time. The company has a Zacks Rank of 2 at present.

American Tower Corporation’s (AMT - Free Report) FFO per share estimate for the current year has moved up marginally to $9.41 in the past week. The company carries a Zacks Rank of 2, currently.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>