Where Is The Free Cash Flow At Equinix?

As a telecom industry veteran, I'm all too familiar with companies that build data centers and networks for the future. All too often, service providers spent billions on networks that needed to be upgraded by the time they were installed.

These companies always promised huge earnings in the future. Massive free cash flows were always around the corner once this feature was added or this connection made. Unfortunately, the competition always had the same plan leading to quick margin erosion and evaporating profits.

While reading the Q4'11 earnings conference call transcript for Equinix (EQIX), this statement in the opening remarks by CEO Stephen Smith got me thinking back to the internet bubble years.

Read the full article at Seeking Alpha.

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