Equinix Inc. (EQIX): Today's Featured Telecommunications Loser

Equinix ( EQIX) pushed the Telecommunications industry lower today making it today's featured Telecommunications loser. The industry as a whole closed the day up 0.4%. By the end of trading, Equinix fell $4.98 (-2.9%) to $166.14 on average volume. Throughout the day, 1.4 million shares of Equinix exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $164-$171.14 after having opened the day at $170.54 as compared to the previous trading day's close of $171.12. Other company's within the Telecommunications industry that declined today were: RIT Technologies ( RITT), down 12.3%, Globalstar Incorporated ( GSAT), down 7.4%, Powerwave Technologies ( PWAV), down 6.4%, and Motricity ( MOTR), down 5.9%.

Equinix, Inc. provides data center services to protect and connect the information assets for the enterprises, financial services companies, and content and network providers primarily in the Americas, Europe, the Middle-East, Africa, and the Asia-Pacific. Equinix has a market cap of $8.15 billion and is part of the technology sector. The company has a P/E ratio of 89.3, equal to the average telecommunications industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 67.3% year to date as of the close of trading on Tuesday. Currently there are 17 analysts that rate Equinix a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Equinix as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

On the positive front, Ambient Corporation ( AMBT), up 8.8%, FairPoint Communications ( FRP), up 7.9%, Envivio ( ENVI), up 7.9%, and JDS Uniphase Corp (CA ( JDSU), up 7.7%, were all gainers within the telecommunications industry with Siemens ( SI) being today's featured telecommunications industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).
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