Austin, Texas-based Digital Realty Trust, Inc. (DLR) brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. With a market cap of $46.3 billion, the company owns, acquires, repositions, and manages technology-related real estate.
Companies worth $10 billion or more are generally described as "large-cap stocks," Digital Realty fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the specialty REITs industry. It has an extensive global data center footprint, with over 300 facilities spread across 50-plus metros in 25-plus countries on six continents.
Digital Realty has slipped 9.7% from its 52-week high of $162.58 achieved on Jul. 16. DLR stock has observed marginal gains over the past three months, outpacing the Nasdaq Composite’s ($NASX) 2.8% decline during the same time frame.
Over the longer term, Digital Realty has underperformed NASX. DLR gained 14% over the past 52 weeks and 10.1% in 2024, lagging behind NASX’s 20.3% gains over the past year and 11.1% returns on a YTD basis.
To confirm the bullish trend, DLR has consistently traded above its 200-day moving average and generally above its 50-day moving average, with some fluctuations over the past year.
Digital Realty stock took a 2.8% hit on Jul. 25 after the release of its Q2 earnings. Despite the company’s core funds from operations (FFO) per share dipped 1.8% annually to $1.65, it surpassed estimates by 1.2%. Its revenues remained relatively flat, with a slight dip. However, due to an increase in operating expenses and provision for impairment its net income attributable to common shareholders saw a substantial 35.1% decline to $70 million, raising concern among investors.
On a positive note, the company reaffirmed its full-year core FFO per share guidance of $6.60 to 6.75, providing some reassurance amid the stock price decline.
Digital Realty’s competitor Equinix, Inc. (EQIX) has underperformed DLR. EQIX gained 6.5% over the past 52 weeks and 1.6% in 2024.
Among the 24 analysts covering the DLR stock, the consensus rating is a “Moderate Buy.” The mean target price of $158.36 represents a 6.8% potential upside from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
