Ranjit Thomas

Equinix 3Q Results: Vade Retro, Recession

EQIX is one of the few grossly overvalued stocks in this market. It hardly generates any profits, burns a huge amount of cash, hands out a liberal amount of stock and options to its executives, and trades at 4x revenues. The stock is essentially worthless, in my opinion, and one day when they can no longer raise any more debt, will have to file for bankruptcy. Until then, management will give rosy projections and merrily sell their stock to unsuspecting investors who evaluate it on non traditional metrics like proforma EBITDA.