Is Equinix a Port in the Coronavirus Storm?
The novel coronavirus epidemic has been tough on real estate investment trust (REIT) stocks. Retail and mall REITs have suffered as consumers stay home and self-quarantine. Office REITs have sold off as investors fret about a potential recession. Mortgage REITs have been sold on prepayment fears.
But one REIT sector has held up reasonably well: the data REITs, especially Equinix (NASDAQ: EQIX), which is down about 5% year-to-date compared to the broader bloodbath in the market. Why has this company been relatively bulletproof?
Equinix takes its name from the phrase "Equality, Neutrality Internet Exchange." The idea was to create a vendor-neutral platform for data exchange. Today, the increasing demand for data and cloud infrastructure has put Equinix at the center of a growing market. Streaming video and home entertainment have increased bandwidth demands as well.
Source Fool.com
