Why Shares in This Data Center REIT Slumped Today
Shares in data center company and real estate investment trust (REIT) Equinix (NASDAQ: EQIX) were lower by nearly 10% by noon ET today. The decline comes after a slew of Wall Street analysts downgraded the stock the day after its analyst day presentation.Here's what the investment community is worried about.In truth, the decline is probably a combination of lofty expectations going into the analyst day presentation (not least because data centers and artificial intelligence, or AI, are the hot investment topics this year). The realization that building out the data centers to service demand will be a drag on its adjusted funds from operations (AFFO) per-share growth. For reference, AFFO is the key metric that investors use to evaluate REITs.Continue reading
Shares in data center company and real estate investment trust (REIT) Equinix (NASDAQ: EQIX) were lower by nearly 10% by noon ET today. The decline comes after a slew of Wall Street analysts downgraded the stock the day after its analyst day presentation.
Here's what the investment community is worried about.
In truth, the decline is probably a combination of lofty expectations going into the analyst day presentation (not least because data centers and artificial intelligence, or AI, are the hot investment topics this year). The realization that building out the data centers to service demand will be a drag on its adjusted funds from operations (AFFO) per-share growth. For reference, AFFO is the key metric that investors use to evaluate REITs.
