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Time now for a closer look at one remind compelling stocks now January ninth I -- Equinix and then the last two and a half months while the shares of search.
The company houses the infrastructure to make cloud computing and mobile data work joining me now -- the company's president and CEO Stephen Smith first of all.
Steven our congratulations the stock is had about an amazing performance.
-- It considering the ups and down -- -- I've gotten hit this stock as well I know you must go pretty good about that.
Now we have -- dark cloud computing all the time.
It obviously covers a whole lot of areas as a whole bunch of different niches explain specifically though -- -- your company does a -- standing out so much.
Well one of the reasons Charles that we we have performed very wells -- -- -- We're in a market where the secular trends are are very very strong so as you mentioned cloud computing.
Electronic trading all these things require very secure and highly reliable data centers all over the world.
To run the infrastructure to make all that stuff work.
And actually today Equinix.
Has grown about 25% of the revenue is is cloud based computing type.
Type infrastructure so it's it's definitely underpinning the growth of the company.
Let's say would you say -- that would -- one novice or laymen call on server farms there is that a mistake.
Well it's a little different.
We are we have we have -- almost a hundred data senators and 38 markets around the world five continents and about thirteen countries.
Can we house mostly mission critical high performance application so typically big fortune 100 global 2000 type customers would put there.
-- very dense Internet -- applications where thus the server farms they would either house in house.
Or use a whole -- like data center provider so we typically handle multiple.
Mostly low latency really high performance applications.
And as you were speaking we're we're flashing some of your customers an amazing very very impressive list of customers how much penetration have we seen -- corporate America and other words and try to get a film what kind of growth potential there is out there.
But we think the growth potential is very very high we we tend the play at the intersection of all these big trends we talked about.
And as long as the Internet is growing and IP traffic and mobile data and more users of all these Smart devices we all carry.
All of that stuff requires a couple of things and that's exactly what Equinix does very highly reliable secure data center space all over the world.
-- the most Internet dense markets and in her connection to each other which was is what happens inside of these data -- companies connect to each other and moved in around the world.
Not realize right now you don't have a lot of competition but.
Outside of a lot of money is -- serious barrier to entry is are you and are you afraid that maybe one of these big names.
Perhaps even name we flashed on the screen may say why are we paying these guys we can buy a whole bunch of you know servers and set ourselves up.
Well it's a very good question.
Thirteen years ago the company started we were selected by the big tier one carriers initially in the United States to fiber and 26 big cities.
We're Equinix was chosen as the the point of -- connection for network traffic to be handed off.
This was in the late ninety's when the Internet was bumping along.
And Equinix was chosen so that got the business started in we have built on top of that and now have.
99 data centers around the world where we're helping companies exchange trapped inside of these facilities.
Figure for -- -- let you go a lot of people still like -- name it's it's one of these hot momentum stocks right now.
By the same token others -- 70% short position.
And a lot of questions about.
Trading at 41 forward -- Questions about where the cash flow is.
As -- CEO of a highly volatile stock do you.
Put -- do you focus on this at all is that it distracts and -- all sometimes obviously the running it that must feel good but by the same token I've been in the stock when it's plunged and it's not fun.
Well it's it is we're in the technology sector as you pointed -- Charles and in a couple of points I would I would I would address that with one.
We are -- thirteen year old company that is growing very very rapidly because of these trends we have over 4000 customers around the world these are big brand name customers -- -- us to run their.
As I said -- mission critical applications.
And we've we steer the company now to a balance where we are heading towards a free cash flow story and 2013.
We have also laid out a revenue targets it's in the three billion range and 12015.
And also -- -- -- the share repurchase program similar to what was described with Apple's doing now obviously in a smaller scale.
We've committed 250 million through the end of points while alright.
And also the company is is looking at tax structures that'll be very beneficial I think all of those things combined are what are what's underpinning the stock price -- Buy -- if they once again congratulations you guys are rocking Stephen -- Smith president and CEO back and it's continued success.
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