EQIX: A way to Short AI & Commercial Real Estate in One Stock
This company deals with renting out Commercial Real Estate, mostly to do with Datacenters and other Internet Connected Operations, and due to that, this makes it a perfect stock to get Bearish Exposure to if you are both Bearish on the AI Big Tech Mania and Bearish on Commercial REITs
One of the main risks for this stock is if their biggest clients, like MSFT and AMZN begin to shift away from using Equinix datacenters in favor of creating and using their own in order to save on costs. If MSFT's recent earnings call is anything to go off of, they are currently desperate to increase profit margins and reduce the costs associated with their business operations especially the costs associated with working with third parties.
One area in which they could cut costs would be to reduce their reliance on Equinix datacenters, but in general as the AI Mania begins to wind down we could likely see the Equinix enterprise consumer base shrink even more, in which case we could see price begin to correct to reflect upon their lower cashflows as both the AI and Commercial REITs sectors continue to slow.
Beyond that: We have a Bearish Shark with MACD and PPO Bearish Divergence and PPO Arrow Confirmation; with hardly any support below us. If it plays out we could see a decline of about 50% from the current price level.
One of the main risks for this stock is if their biggest clients, like MSFT and AMZN begin to shift away from using Equinix datacenters in favor of creating and using their own in order to save on costs. If MSFT's recent earnings call is anything to go off of, they are currently desperate to increase profit margins and reduce the costs associated with their business operations especially the costs associated with working with third parties.
One area in which they could cut costs would be to reduce their reliance on Equinix datacenters, but in general as the AI Mania begins to wind down we could likely see the Equinix enterprise consumer base shrink even more, in which case we could see price begin to correct to reflect upon their lower cashflows as both the AI and Commercial REITs sectors continue to slow.
Beyond that: We have a Bearish Shark with MACD and PPO Bearish Divergence and PPO Arrow Confirmation; with hardly any support below us. If it plays out we could see a decline of about 50% from the current price level.
