Raymond James downgraded Equinix to Market Perform due to short-term challenges

From Yahoo Finance: 2025-06-30 11:31:00

Equinix, Inc. (NASDAQ:EQIX) was double downgraded by Raymond James to Market Perform from Strong Buy. The company is in a multi-year shift to position itself for AI-based demand by doubling its capacity. While the changes may bring long-term benefits, there could be short-term challenges according to analyst Frank Louthan.

Equinix, Inc. (NASDAQ:EQIX) is a digital infrastructure company interconnecting foundational infrastructure. It operates across Americas, Europe, Middle East, Africa, and Asia-Pacific, providing interconnection, digital, data center and support services. Equinix is focused on doubling its overall capacity despite muted short-term growth rates.

Equinix, Inc. (NASDAQ:EQIX) is considered one of the 11 Best Strong Buy Stocks to Invest in Now. The company is making strategic shifts to align with AI-based demand, which may lead to short-term challenges. Investors are advised to consider other AI stocks for greater upside potential and less downside risk.

A team of IT professionals is working on Equinix’s digital platform, indicating the company’s focus on agile digital services. Louthan highlighted that the company’s spending outlook is set to increase significantly in the coming years as it doubles its capacity. Equinix’s rising cash flow positions it as a next-generation dividend aristocrat.

Read more: Raymond James Downgrades Equinix (EQIX) to Market Perform from Strong Buy