Buy Equinix To Play Growing Demand In Data And Network Traffic

Equinix (EQIX) recently announced that its data center in Hong Kong has been chosen by RTS Realtime Systems Group. Realtime, which is a leader in providing electronic trading software as well as risk management solutions, is in the process of expanding its operations in Asia and has selected Equinix to provide data center solutions. Equinix's data center will serve as RTS's solution to providing trading solutions in the Asia-Pacific region. The data center will be linked to the company's global network which provides market access to over 60 exchanges worldwide. RTS's clients depend on its network for high speed access to various asset classes, and with access to Equinix's data center, its clients can have easy access to major exchanges around the world.

We are bullish on EQIX based on high demand for its services going forward as well as the expansion of its data centers in high growth regions. Its conversion to REIT can be identified as another catalyst for the stock. If it gets classified as a REIT, it will have to distribute a certain amount of cash flows to investors in the form of dividends. Read more