I don't know if the last several days uptrend is a result of approaching EBITDA positive or not, it could be any or a combo of several things, both macro & micro. However, I wouldn't underestimate the positive stigma that will be attached to EBITDA+. This company has been valued for months now as a BK play. EBITDA+ status will seriously call into question this valuation method. Fully cash flow postive status would almost virtually eliminate BK valuation. So we have Mgmt very close to delivering EBITDA postive results on schedule as promised early in the year. They are promising cash-flow positive results by mid 2002. Delivering on the EBITDA front gives credibility to Mgmt claims for CF. CF virtually eliminates BK pricing. Therefor I see EBITDA as potentially a big deal, both to Wall Street and to potential customers, which in turn further impresses WallStreat.
One thing I'm liking here is that the day's trading is mirroring Nassy trends - including the pullback around mid-day and the upward trend at the end here. Recall in weeks past it seemed that EQIX didn't participate in these broader movements.
Well in any case, I cant wait to see what's actually causing this rally... and how long can it possibly keep up? It's been 9 days now for crying out loud. And have you seen the volume? Like 2.5x average today. This definitely is the kind of behavior I'd expect from EBITDA+, but i haven't heard noise one about it.