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Technology Stocks
Equinix (EQIX)
An SI Board Since July 2001
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2 2 0 EQIX
Emcee:  Marco Polo Type:  Moderated
A company called Equinix came out with earnings today that actually beat heightened expectations. In a market when everyone is having difficulty meeting lowered expectations, I thought there should be a forum for this company.

They are the largest company in an industry called carrier-neutral colocation. They compete against all tradiational colo providers, which is everyone and their sister, but the thing is that no one switches away from carrier-neutral to normal colo, just the other way around. In other words, Exodus and AboveNet customers like Fool.com are starting to come to Equinix in droves.

The concept is that unlike other colo options, when you colo with Equinix, you are in the same building as fifteen different network providers (i.e. Verio, Genuity, ATT, Cable & Wireless, Qwest, UUnet, etc.) instead of just one. If you experience bad networking or problems, you are free to switch your network to a different provider at any time without having to physically move your servers or local network. You obviously can't do this at traditional colo providers like Exodus, and this is why Equinix is starting to steal customers.

This is the only company on the market that doesn't seem to be suffering from any form of price erosion, and their quarter revenues today were posted at 30% higher quarter-to-quarter and many times higher year-to-year.

Especially in this environment, Equinix is doing an amazing job. The stock price has only moved from $1 to $1.55 this week ($1.30 to $1.55 in after-hours after earnings today)... the price still doesn't seem to coincide with the growth they are experiencing and the loss narrowing at a much greater pace than expected.

I'm looking for $3.00-$3.50 in the next week and $15 in the next year. Even in a bear market, there are big winners with great new concepts. No fears of a cheap buyout, EQIX is sitting on PLENTY of cash... went public at $12 and has knocked the cover off of expectations with every quarter. Has been grouped in with EXDS and failed models like that, but in reality EQIX is lending to the demise of EXDS... stealing one of their largest customers on Monday in the Motley Fool's entire operation @ Fool.com.

Closest competitor has 5 backbones signed up to provide service, and just entered Chapter 11. Equinix has 15 backbones using its centers and is sitting pretty from a financial perspective, ready to take on Colo.com's customers as well while they wallow in Ch. 11.

Let's talk about one of the very few tech companies beating heightened expectations these days.

Tiny, tiny float: 42MM shares.
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