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Equinix (EQIX) reported 2Q 2008 results Wednesday night (see conference call transcript).

As we had forecasted (see the previous Seeking Alpha article), numbers were pretty solid, the Company exceeded revenue expectations for the quarter and lifted the outlook for the full year 2008, both for revenues and EBIDTA (as a reminder, Equinix had increased expectations the previous quarter, too).

Investment Thesis

Equinix (EQIX) is the #1 network neutral co-location provider in the world. <!--more--> Industry dynamics favor the company due to customer demand growth exceeding co-lo supply. This is primarily driven by the growth in internet traffic and bandwidth intensive content. EQIX has a highly defensible business model insulated by the benefits that customers receive from “inter-connecting” within EQIX data centers. Hence, the customer barriers to exit are high and Equinix garners a 95% recurring revenue stream. EQIX’s global footprint spans 39 datacenter in 10 countries acros