Investment Thesis

Equinix (EQIX) is the #1 network neutral co-location provider in the world. Industry dynamics favor the company due to customer demand growth exceeding co-lo supply. This is primarily driven by the growth in internet traffic and bandwidth intensive content. EQIX has a highly defensible business model insulated by the benefits that customers receive from “inter-connecting” within EQIX data centers. Hence, the customer barriers to exit are high and Equinix garners a 95% recurring revenue stream. EQIX’s global footprint spans 39 datacenter in 10 countries across 3 continents. Shares have been hammered over the past 6 months, fueled by a misinformed report by Off The Record Research and the Street’s poor understanding of the business fundamentals. EQIX represents an attractive investment opportunity that we value at $130, almost 80% above current levels.