In an exclusive free preview of next week’s Data Hosting Centers & Data Storage Report, the Chief Marketing Officer of Equinix, Inc., and a Wall Street Journal “All-Star” analyst discuss the current volatility of data storage stocks with The Wall Street Transcript.
Equinix CMO Jarrett Appleby sits down with TWST to discuss the company’s recent acquisition of Switch & Data and the subsequent integration process.
“The acquisition was built on a common business model and a strong cultural fit,” Appleby said. “Why was this important? Because the continued and rapid growth for online information requires companies to reliably connect and improve the performance of their business-critical content and applications by storing and distributing latency-sensitive assets at the network edge, near local population.”
However, Clayton F. Moran, SVP and Senior Analyst at The Benckmark Company, says that part of Equinix’ downward revision to its second-half guidance last week is due to softness in the Switch & Data portfolio.
“The pipeline of new business has not converted to revenue as quickly as Equinix expected, so initial results from this acquisition are poor, explains Moran, who, despite EQIX’s stock selloff, retains a “buy” rating on the company.
“While we were alarmed at the miss and the explanation, we view the stock selloff as disproportionate,” Moran said. “Macro drivers remain intact, but with a management credibility issue, this stock is likely to linger near term. Our new price target is $83 per share.“
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