How Low Can Equinix Stock Go In A Market Crash
Equinix has historically underperformed the S&P 500 during major market downturns. For instance, it declined 43% during the Inflation Shock compared to the S&P 500’s 25%, and it fell 70% in the Global Financial Crisis versus a 57% drop for the index. On average, Equinix’s stock declined by 54% across significant crashes. The time to bottom varied, typically ranging from 5 to 14 months, while recovery periods also differed, taking anywhere from 5 months to 216 months for full recovery. This pattern underscores Equinix’s vulnerability and sensitivity to market declines rather than resilience, indicating ongoing risks in tumultuous market conditions.
Equinix Stock Performance In Market Crashes:
| EQIX | S&P 500 | |
|---|---|---|
| Dot-Com Bubble | ||
| % Change from Pre-Recession Peak | -98% | -37% |
| # of Months for Full Recovery | 216 | 69 |
| Global Financial Crisis | ||
| % Change from Pre-Recession Peak | -70% | -57% |
| # of Months for Full Recovery | 39 | 49 |
| 2018 Correction | ||
| % Change from Pre-Recession Peak | -31% | -20% |
| # of Months for Full Recovery | 5 | 4 |
| Covid Pandemic | ||
| % Change from Pre-Recession Peak | -29% | -34% |
| # of Months for Full Recovery | 5 | 5 |
| Inflation Shock | ||
| % Change from Pre-Recession Peak | -43% | -25% |
| # of Months for Full Recovery | 17 | 15 |
Worried that EQIX is yet to hit the bottom? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.