Data center stock Equinix (EQIX) may not operate the most sexy business out there, but what it does have is 6.5 million square feet of datacenter space spread across five continents. That huge position in datacenter capacity, a product that's highly in demand right now, has given Equinix stair-step revenue and earnings growth for the past several years. But it hasn't helped with how much investors hate this stock.
Equinix is the world's biggest provider of data colocation services. That means that data owners pay EQIX to store their content on its servers and harness the speed of its network. The firm's global footprint means that data has a shorter path to travel to its destination. That's a huge advantage for the growing wave of rich media, financial data, and other cloud services that's been popping up seemingly everywhere in recent years. As services continue to offer consumers more content on "the cloud," Equinix should continue to benefit from boosted sales.Financially, Equinix is in solid shape with a $550 million cash and investment position that helps to offset its modest $3 billion in debt. Still, investors have piled in a big position against this $10 billion data stock. At last count, EQIX sported a short interest ratio of 15.82. That's more than three weeks of buying pressure just for shorts to exit their positions.
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