EQIX down 25% AH!!!!!

Discussion in 'Stocks' started by S2007S, Oct 5, 2010.

  1. S2007S


    On Tuesday October 5, 2010, 4:45 pm EDT

    FOSTER CITY, Calif. (AP) -- Data center service provider Equinix Inc. lowered its third-quarter and full-year revenue forecasts Tuesday, sending its shares tumbling in aftermarket trading.

    Equinix said it has lost more customers in North America than it expected. It also needed to cut prices by more than expected to win long-term contracts, and said the Switch and Data business it bought in April did not bring in as much revenue as it had estimated.

    In aftermarket trading, Equinix shares dropped $19.99, or 19 percent, to $85.26. The stock closed the regular session up 4 percent at $105.09 during a broader market rally.

    The company is now forecasting $328 million to $330 million in revenue for the third quarter, down from its previous estimate of $335 million to $338 million. For the full year, Equinix is now calling for about $1.22 billion in revenue, down from a prior forecast of $1.23 billion to $1.24 billion.

    Analysts, on average, have expected the company to report $336.8 million in revenue in the third quarter, according to Thomson Reuters. On average analysts are looking for $1.23 billion in revenue for the year.

    Equinix, Inc.
    (NasdaqGS: EQIX)

    After Hours: 78.47 Down 26.62 (25.33%) 7:59PM EDT
    Last Trade: 105.09
    Trade Time: 4:00PM EDT
    Change: Up 3.99 (3.95%)
    Prev Close: 101.10
    Open: 102.34
    Bid: 78.41 x 100
    Ask: 78.50 x 100
    1y Target Est: 119.67
    Day's Range: 101.94 - 105.09
    52wk Range: 76.29 - 110.57
    Volume: 4,947,804
    Avg Vol (3m): 841,577
    Market Cap: 4.79B
    P/E (ttm): 90.05
    EPS (ttm): 1.17
    Div & Yield: N/A (N/A)
  2. Catalite


    Cisco's new server technology means companies don't need to outsource server farms any more.
  3. many bagholders.
  4. S2007S


    From nearing a 52 week high to a 52 week low overnight.

    Now that is some damn drop.
  5. It was up 36% over the last 3 months, so there was plenty of room to drop.

    I'm not going to catch a falling knife even though a 33% haircut on a 1 to 2% revenue miss looks like a huge overreaction. I've been trading RAX, CTXS, and VMW instead, which are down 8 to 12% in sympathy.
  6. pretty incredible. i was burned by others falling in sympathy.
  7. Saoleo


    We will see a lot of history like EQIX during next year. Do you really think that stocks with P/E above 20-30 have real value?
  8. dumb
  9. LEAPup


    We'll see what shakes out. Should be interesting...
  10. NoDoji


    What I found interesting was my chart of the options shows $100 puts going for around .50 yesterday. I would've thought the pre-earnings vola on a high flyer like that would've commanded more premium. Put sellers were left holding their own body bag; $100 puts as high as $28 today.

    Is my option chart wrong about that .50 premium yesterday?
    #10     Oct 6, 2010