Equinix stock soars on Q1 earnings driven by data centers

Shares of Equinix (EQIX) are booming on Thursday, propelled by the company's first-quarter earnings beat. The results were driven by Equinix's ownership of various data center facilities. This comes after the company received a subpoena from the US Department of Justice (DOJ) back in March.

Market Domination's Julie Hyman and Josh Lipton break down the details, discussing whether this stock surge is in fact a relief rally.

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This post was written by Angel Smith

Video transcript

Equinox shares trending up.

I'm saying Equinox, Equinox Joy.

Uh they are trading up as the A I boom ripples into the real estate market company reporting better than expected first quarter earnings yesterday, largely due to its data center ownership.

So Equinox, this is an interesting one.

you know, there had been some talk Julie about their reporting time frame and, and we talking there was various kind of different cross currents here.

Internal Audit Committee Doj subpoena that we heard about in March.

There was that short report from Hindenburg that also came out late March, the bottom line.

Um They did report in what I saw described as sort of mixed results actually, but the fact that they reported it all seems to be a because of the background that you're talking at the fact that there had been what was perceived as a delay that there's all this sort of noise around it.

And the company did an internal investigation of its accounting practices and that's now done.

However, there is still there are still some investigations, some questioning into the company from official regulators, federal regulators that doesn't seem to be complete.

But this step that the company did itself seems to have made some progress and it looks like a bit of a relief rally really is what we're seeing in the shares today.

Yeah, team at T bank uh their sector weight Q one results, they said updated guidance, completion of the investigation.

They call it a positive city which is a buy on the name sticking with.

It looks like they say this is a long term beneficiary in their opinion, from A I demand.

So, so they, they're fans that would make sense in theory.