Should You Hold Equinix (EQIX)?

Core Insights - ClearBridge Investments released its fourth-quarter 2025 investor letter for the ClearBridge Large Cap Growth Strategy, emphasizing an investment philosophy focused on undervalued leading companies with growth potential [1] - Large-cap stocks showed strength in the quarter, driven by strong earnings from mega-cap companies and enthusiasm for generative AI, although the ClearBridge strategy underperformed the Russell 1000 Growth Index by approximately 900 basis points for the year [1] - The underperformance was attributed to underweight exposure to mega-cap AI beneficiaries and lower-quality AI-related names, trailing the benchmark's 1.2% quarterly advance by about 170 basis points in the fourth quarter [1] Company-Specific Insights - Equinix, Inc. (NASDAQ:EQIX) was highlighted in the investor letter, with a one-month return of 2.97% and a 52-week loss of 18.35%, closing at $776.55 per share with a market capitalization of $76.25 billion on January 6, 2026 [2] - The ClearBridge strategy noted that Equinix's diversified exposure to AI did not significantly add value in 2025, with expectations that revenue growth acceleration will be delayed until 2027 due to large capital spending projects [3] - Equinix is not among the 30 most popular stocks among hedge funds, with 58 hedge fund portfolios holding the stock at the end of Q3, down from 66 in the previous quarter, indicating a potential shift in investor sentiment [4]