Charles J. Meyers, president and CEO of Equinix, poses in his place of work in Redwood City, Calif., Dec. 18, 2018.
Nhat V. Meyer | Bay Digital To start with Media | The Mercury News by means of Getty Visuals
Hindenburg Analysis on Wednesday took intention at Equinix, the $80 billion knowledge centre service provider, and accused the company’s management of selling shareholders an “AI pipe aspiration” though manipulating critical metrics to increase the visual appearance of profitability.
Hindenburg stated it experienced taken a limited place in opposition to Equinix, indicating it was betting that shares of the serious estate investment have confidence in, or REIT, would fall.
Equinix shares plunged 7% in pre-current market trading on the report. The company’s buyers contain the cloud divisions of Amazon, Google and Microsoft, according to Equinix’s website.
The short vendor mentioned that Equinix reported routine maintenance expenditures — a significant value heart for REITs — as spending on growth, producing it appear that “that the firm’s charge to keep its profits foundation is decreased than it basically is.”
Former Equinix workers and executives stated that the force to misclassify capex as expansion fairly than servicing arrived “from top rated administration.”
Hindenburg stated that the “questionable” accounting allowed Equinix to boost its altered resources from functions, a metric the business also utilized to decide government inventory grants.
Hindenburg has taken brief positions from other big names, together with Nikola, Icahn Enterprises and Gautam Adani’s conglomerate.
Equinix did not straight away react to a request for remark.
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