Equinix Hits $100 A Share

One sign of investor faith in the data center sector is the strong stock market performance of Equinix (EQIX), which topped $100 a share this week. Equinix shares topped the benchmark on Tuesday, and have since moved above $102 before closing Thursday at $101.07. This marks the highest price for Equinix since the company split shares after a merger at the close of 2002.

Shares of Equinix opened 2007 at $75.62 a share, and are now up 33.6 percent on the year to date. That follows on an 85.5 percent gain in 2006, when Equinix was among a field of strong-performing data center stocks along with NaviSite (NAVI), Internap (INAP), Savvis (SVVS) and Akamai (AKAM), which all had percentage gains of between 166 and 475 percent.

The $100 a share milestone is a long way from the end of 2002, when the company completed a complex series of deals with Singapore Technologies Telemedia, Pihana Pacific and its senior bond holders that provided Equinix with a cash infusion, a reduced debt load and an expanded presence in the Asia-Pacific market.

Shares of the “new Equinix” started 2003 trading at $5.50 a share, and dipped as low as $2.99 a share before beginning a lengthy climb. That upward trend has accelerated since Equinix raised its revenue guidance to account for revenues from its acquisition of IXEurope in mid-September. EQIX is up $17 since it closed at $84.05 on Sept. 20.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.