Hindenburg Research Accuses Equinix of Inflating Profitability and Selling an 'AI Pipe Dream'

Equinix's shares drop following allegations of financial manipulation and concerns over AI-driven electricity demands.

Hindenburg Research discloses a short position in Equinix, alleging inflated profitability metrics and an AI pipe dream.
Equinix shares fell as much as 7% in early trading following the report, with the company stating it is investigating the claims.
The short seller accuses Equinix of misclassifying capital expenditures to boost adjusted funds from operations (AFFO), allegedly inflating its profitability.
Insiders at Equinix have cashed out more than $327 million in company stock since 2019, according to Hindenburg.
Hindenburg's report raises concerns about Equinix's ability to meet the rising electricity demands for AI, potentially threatening its operations.