Putting myself in the shoes of a short seller, I would be concerned that this could be read as, yes management is inflating the measure that determines their bonuses, but this says nothing about the success of the business itself.<p>While AFFO (a non-GAAP measure) may be inflated, it hasn't grown faster than the relevant GAAP measures. In fact, net income has almost doubled since 2021 while AFFO has only grown 23%. Revenue growth has been 23% as well.<p>None of this is wildly inconsistent. The only thing that really stands out is the sudden drop in maintenance CapEx in 2015.<p>They do highlight some other things about the data center market that may be relevant to the share price, but this seems far less damning than the AFFO issue.
The U.S. Attorney's office for the Northern District of California is getting interested.[1]<p>[1] <a href="https://www.marketwatch.com/story/equinix-gets-subpoena-as-board-examines-short-seller-s-claims-26748153" rel="nofollow">https://www.marketwatch.com/story/equinix-gets-subpoena-as-b...</a>
Recognising everything you can as CapEx is … fine … but even I am impressed by recognising a new lightbulb as capital investment. I mean … yeah, it is I guess…
It went a long way from the early days of Jay Adelson & PAIX. Publicly-traded megacorps tend to devolve into chicanery without solid leadership and supportive board of directors. Instead, the bureaucrats, pyramid builders, and greedy folks move in and capsize the ship.
Hindenburg research's entire business revolves around producing "reports" about companies, claiming fraud and manipulation, and then short-selling on a large scale. They've done this in the past, and they've been sued.<p>In my wildly biased opinion, companies like Hindenburg are leeches that contribute nothing to the world.<p>While there may be some elements of truth behind their reports, I'd take it with a large helping of salt, given the main objective of this company.
Can someone who knows more about the practical aspects of shorting stoks as an individual investor opine on how one would try to profit from Hindenburgs reports? (Let’s say if one can aford to loose 100k)<p>I am aware of the risks of shorting and have no inclination to do so. I’d just like to hear the considerations of someone well versed in this kind of activities.