U.S. markets close in 2 hours 9 minutes
  • S&P 500

    +72.36 (+1.57%)
  • Dow 30

    +312.88 (+0.90%)
  • Nasdaq

    +318.52 (+2.06%)
  • Russell 2000

    +16.23 (+0.72%)
  • Crude Oil

    +2.68 (+3.93%)
  • Gold

    -1.30 (-0.07%)
  • Silver

    -0.28 (-1.20%)

    -0.0048 (-0.43%)
  • 10-Yr Bond

    +0.0420 (+2.83%)

    -0.0045 (-0.34%)

    +0.4490 (+0.40%)

    +4,716.66 (+8.73%)
  • CMC Crypto 200

    +38.37 (+2.68%)
  • FTSE 100

    +65.92 (+0.94%)
  • Nikkei 225

    -467.70 (-1.63%)

Equinix to Fortify Hybrid Multicloud Efforts With Packet Buyout

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Equinix, Inc. EQIX recently entered into a definitive agreement to purchase Packet, the leading bare metal automation platform. The transaction is expected to close in the ongoing quarter.

Packet offers bare metal cloud platform — dedicated servers which can be used by developers with cloud-like ease, scale and speed. The company’s proprietary technology enables the automation of complex infrastructure without using virtualisation or multi-tenancy.

Equinix will integrate this innovative and developer-oriented bare metal service offering with its network of colocation data centers and inter-connection technology.

This will create a world-class, enterprise-level bare metal offering across its flagship platform — Platform Equinix — allowing customers to accelerate digital infrastructure deployment on demand. Further, by leveraging bare metal services at Equinix, the integration will provide a single platform to users and equip them to interconnect anywhere on a global scale. 

This will enhance the development and delivery of its inter-connected edge services, and help companies extract greater value for its rich ecosystems and globally-interconnected platform.

In addition, by acquiring Packet, the company will have access to its developer-friendly product, and enable enterprises and service providers to build and deploy low-latency services at the edge.

While as a data-center provider the company has been closely involved in the cloud market, the acquisition of Packet will make it a cloud provider.

Equinix has been actively expanding its infrastructure footprint and enhancing capabilities through actuations and strategic tie-ups. Recently, it wrapped up the acquisition of three data centers from Axtel S.A.B. de C.V., which cater the Mexico City and Monterrey metro areas of Mexico. The company shelled out $175 million for this buyout, making it one of the largest network-neutral data-center operators in Mexico.

While such moves are in line with the growing demand for colocation and inter-connection services, the same requires huge capital outlays.  

Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 3.3%, outperforming the real estate market’s growth of 0.4%.

Stocks to Consider

Boston Properties, Inc. BXP currently carries a Zacks Rank of 2 (Buy) and has gained 13.8% in the past year. The company’s funds from operation (FFO) per share estimate for 2020 has been revised marginally upward to $7.53 in two months’ time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Duke Realty Corporation’s DRE Zacks Consensus Estimate for the current-year FFO per share remained unrevised at $1.52 in the past month. It carries a Zacks Rank of 2, at present. The stock has rallied 24.8% over the trailing 12-month period.

Lamar Advertising Company’s LAMR Zacks Consensus Estimate for the ongoing year’s FFO per share remained unchanged at $6.15 over the past 30 days. Currently, it carries a Zacks Rank of 2. Also, it has appreciated 22.4% in the past year.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Equinix, Inc. (EQIX) : Free Stock Analysis Report
Lamar Advertising Company (LAMR) : Free Stock Analysis Report
Boston Properties, Inc. (BXP) : Free Stock Analysis Report
Duke Realty Corporation (DRE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research