Would You Still Hold Equinix Stock If It Fell 30%?
Equinix (EQIX) stock is up 17.6% in 21 trading days. The rally reflects surging AI-driven demand and global data center expansion, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where Equinix stands today.
- Size: Equinix is a $93 Bil company with $9.2 Bil in revenue currently trading at $944.91.
- Fundamentals: Last 12 month revenue growth of 5.4% and operating margin of 21.3%.
- Liquidity: Has Debt to Equity ratio of 0.24 and Cash to Assets ratio of 0.08
- Valuation: Equinix stock is currently trading at P/E multiple of 68.7 and P/EBIT multiple of 45.6
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Risky. For details, see Buy or Sell EQIX Stock
That brings us to the key consideration for investors chasing this rally: how resilient is EQIX stock if markets turn south? This is where our downturn resilience framework comes in. Suppose EQIX stock falls 20-30% to $661 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- EQIX stock fell 42.8% from a high of $882.83 on 3 September 2021 to $505.39 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 28 February 2024
- Since then, the stock increased to a high of $985.00 on 8 December 2024 , and currently trades at $944.91
| EQIX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.8% | -25.4% |
| Time to Full Recovery | 502 days | 464 days |
2020 Covid Pandemic
- EQIX stock fell 25.4% from a high of $655.99 on 21 February 2020 to $489.14 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 April 2020
| EQIX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -25.4% | -33.9% |
| Time to Full Recovery | 16 days | 148 days |
2018 Correction
- EQIX stock fell 31.2% from a high of $492.98 on 8 November 2017 to $339.02 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 May 2019
| EQIX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -31.2% | -19.8% |
| Time to Full Recovery | 149 days | 120 days |
2008 Global Financial Crisis
- EQIX stock fell 69.9% from a high of $116.66 on 31 October 2007 to $35.14 on 21 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 January 2012
| EQIX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -69.9% | -56.8% |
| Time to Full Recovery | 1,160 days | 1,480 days |
Feeling jittery about EQIX stock? Consider portfolio approach.
Portfolios Over Individual Stock Picks
Single stocks swing wildly but staying invested matters. A well built portfolio helps you stay invested, captures upside and softens the blows from individual stocks.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.