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.
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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.
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