Equinix Inc. (EQIX): Today's Featured Internet Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Equinix ( EQIX) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Equinix fell $4.88 (-2.3%) to $210.17 on heavy volume. Throughout the day, 1.3 million shares of Equinix exchanged hands as compared to its average daily volume of 781,300 shares. The stock ranged in price between $209.58-$215.54 after having opened the day at $214.77 as compared to the previous trading day's close of $215.05. Other companies within the Internet industry that declined today were: VirnetX ( VHC), down 15.3%, Friendfinder Networks ( FFN), down 14.8%, Renren Inc ADR ( RENN), down 6.9%, and TheStreet ( TST), down 6.8%.
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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 $10.51 billion and is part of the technology sector. The company has a P/E ratio of 80.6, above the S&P 500 P/E ratio of 17.7. Shares are up 4.3% year to date as of the close of trading on Thursday. Currently there are 15 analysts that rate Equinix a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Equinix as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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