I believed it will bounce back up and it did. Today EQIX just released Q3's results and in the after-hour trading price goes as high as $82 (8% increase). As I'm writing this post 5% is gain. If tomorrow it can stablize around $80 then the return for 20 calendar days will be (80-70)/70= 14%. Stock market is a game of expectations. After the bad guidance was out, investors will sell first then calculate. This is why we always have overreactions. Sometimes it's large enough to be used sometimes it's not.EQIX's 30+% is definitely large enough for contrarian to make money.
Revenue is in line with estimate but EPS missed by 2 cents. Market still reacts positively though.
Financial ratio analysis gives rather not ideal scenario. Costs are getting higher and higher for past two quarters while efficiency ratios are trending downwards. Be careful if you are considering it as investment opportunity. I will rather look at other stocks for cloud computing industry.
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