Hindenburg Bets Against Data Center Owner Equinix in New Report
- Equinix shares fall after Hindenburg reveals short position
- REIT said to not proceed with a planned euro bond offering
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Short seller Hindenburg Research targeted data center owner Equinix Inc. Wednesday, alleging that the company manipulates its accounting and is selling an “AI pipe dream.”
Hindenburg’s disclosure of a short position and its allegations raise questions about the future for Equinix, which has been benefiting from the expectation that artificial intelligence companies will need even more data centers to power the technology. Equinix shares were pummeled Wednesday and the company pulled a previously planned bond offering after the report hit.