2024-07-21 08:10:20 ET
Summary
- Digital Realty Trust positioned to become an AI factory for hosting accelerated computing for smart applications, driving revenue growth.
- With increasing demand for data centers, hosting prices have also increased, leading the way for better profitability and FFO.
- Capital-light approach through joint ventures and asset sales reducing leverage, and improving financial capability for future investments.
- There is also the competition and risks related to the supply chain, which may impact execution.
- Thus, it is important to obtain a management update on the risks during the second quarter's earnings call next week and watch out whether the capital-light approach remains on track.
Since I last covered Digital Realty Trust ( DLR ) in February 2021 in a piece entitled “ Expanding To Greener Pastures”, it had gained 25% by December as a beneficiary of the digital transformation trend, before plunging as the Fed tightened rates aggressively. Since then, the stock has gone up and trading at around $155....
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For further details see:
Digital Realty Trust: AI Factory Opportunities (Rating Upgrade And Q2 Preview)