• Brett Schafer

Deep Dive: Braden Dennis Discusses Equinix Stock

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Show Notes

This week we brought on Braden Dennis from the Canadian Investor Podcast and Stratosphere.io to talk Equinix. Equinix is a real estate investment trust (REIT) that focuses on the data center and internet connectivity market. It provides services to huge cloud infrastructure companies like AWS, Azure, and Google Cloud. Here are some questions we asked him on the show:

  1. How did you find Equinix? History?

  2. Equinix works with some of the largest cloud providers. What do they do? What value do they provide?

  3. Let’s go through parts of Equinix’s business: Data centers (footprint, colocation services), Interconnection (Equinix Fabric, Internet Exchange), Services (Network Edge, Equinix Metal), Different industries they serve.

  4. Does this business have economies of scale? Who could/is competing with them?

  5. What is adjusted funds from operations (AFFO)? Why is it important for valuing a REIT? What other metrics do you use to value Equinix?

  6. What growth are you expecting from Equinix over the next 3 to 5 years?

  7. Thoughts on management? How important are they to the investment thesis for Equinix?

  8. What could go wrong with an investment in Equinix?

Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.

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