Why Equinix Stock Rose Nearly 12% in July
Shares of data center real estate investment trust (REIT) Equinix (NASDAQ: EQIX) rose just shy of 12% in July, according to data from S&P Global Market Intelligence. In fact, despite a dip during the brief bear market earlier in the year, 2020 has been pretty good for the stock, which was up some 35% through the first seven months of the year. For comparison, the S&P 500 was only up 2% or so over that span.
The big story here is COVID-19, but not in the way you might think. The worldwide effort to slow the spread of the coronavirus led to economic shutdowns and people effectively hiding in their homes. That's terrible for most businesses, but not for Equinix, which owns data centers. In fact, demand for its properties is likely to grow for years to come because of the increase in online shopping and people working from home, with even formerly in-person-only professions, like healthcare, embracing technologies that allow for remote work.
Image source: Getty Images
Source Fool.com
