New York: A research by Hindenburg has accused that the management of top data center provider Equinix misled their shareholders around key metrics, numbers and effectively sold an ‘AI pipe dream’.
As per CNBC, Hindenburg has decided to bet against the shares of Equinix by taking a short position against the firm. A short is basically done when someone suspects the prices of certain company’s stock is about to fall. So they secure it and then buy it back later for a lower price earning a profit.
The report has further stated that Equinix showed false maintenance expenses in front of their shareholders and supplied them for growth. The 80 billion dollar firm further bolstered its funds from operations. This metric is used to evaluate stock gains.
Former employees of Equinix also blew the whistle on the company saying that they were pressurised by the top management to manipulate these numbers. Some of Equinix key clients in the cloud and AI scenario include Google, Microsoft and Amazon.
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