Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of data center management and cloud play Equinix (Nasdaq: EQIX) are shooting to the stars today, up as much as 14% earlier in the trading session, following better-than-expected first-quarter results.

So what: For the quarter, revenue grew 25% to $452.2 million while net income jumped 37% to $0.71. Both figures crushed Wall Street's expectations for $445.1 million in sales and a profit of $0.49. Equinix also issued revenue guidance for the second quarter of $466 million to $468 million, which is slightly ahead of the $463.9 million consensus estimate. Tack on a price target upgrade from Stifel Nicolaus to $200 from $165 and you have the makings of a great day for bulls.

Now what: Despite the earnings beat, there are still a lot of questions that need to be answered about Equinix's valuation, and that's the reason I maintain a CAPScall of underperform on the stock. Spending continues to be frivolous, with general, selling, and administrative expenses soaring 30% in the first quarter. In addition, the company's full-year revenue forecast of $1.89 billion was only at the high end of current expectations. I'd expect more for a company valued at 47 times forward earnings and with more than $3 billion in debt.

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