Robert LauzonEquinix, Inc. EQIXPAST TOP PICKFeb 23, 2021

EQIX operates as a data center REIT, and is now trading at 31.7x times' EV/EBITDA (historical averages range from 22x to 33x). The company's growth was mainly fueled by acquisitions of data centers by issuing debt and equity. The balance sheet is leveraged, similar to other REITs in the industry, with net debt of $14.3B, and net debt/EBITDA is currently at 5.1x. The company had a continuous track record of growing AFFO lasting for around a decade, which supports consistent dividend growth. We like EQIX, but the valuation may not be attractive enough for an entry point, we would be comfortable averaging into the position and nibble into the name when opportunities present. The income is solid, but we would not be in a big rush to add. That being said, lower interest rates (if they occur) should be quite positive for the sector overall. 
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King of all data centre REITs. Phenomenal company. Great scale. Picks and shovels in AI, and AI is all about data. Biggest data centre in the world, as all the big cloud companies use it. Relentless growth in cloud, secular growth still in early innings. Yield is 1.98%.

A tough call. Some feel data centres will pull back, but others see e-commerce spending continuing. Doesn't pay much of a yield. Good chart.

Equinix vs. Digital Realty They're both the largest US data centres. Equinix focuses on interconnection and co-location, housing thousands of businesses within the same business centre. Digital Realty focuses on hyperscale, which provides buildings and server racks for megacaps companies like Google. The latter business has fewer barriers to entry and is far more competitive with less pricing power. He prefers Equinix's model.

A data centre REIT. It facilitates companies like Facebook and Amazon to connect to each other. They own data centres across the globe. They recently bought assets from BCE. Niche REITs like this are good. With growing data demands, it should be a good investment.

He does not own DLR presently, but has in the past. They are involved in the data centre business. He currently owns EQIX, who partnered with BCE to manage their data centres. If you own DLR, stick with it. If you are looking at getting into the space, consider EQIX.

(A Top Pick Mar 04/19, Up 51%) It's getting close to his price target of $675. Is this a space to be in? It's a behemoth in data centres while there's massive growth in cloud--still early days of cloud. So, EQIX has competitive advantage in size, winning deals and keeping costs down. The trend to working at home is a tailwind. EQIX is the largest player in data centres in the world. Buy this in the $500s. MSFT uses EQIX as a storage facility. EQIX plays into the internet of things and macros tech trends, all tailwinds.