AMT Stock Recent News

Investing in real estate can be very lucrative, and rental properties can generate lots of income for their investors. Real estate investment trusts ( REITs ) own large and growing rental property portfolios, giving them the potential to be money-printing machines.

AMT eyes 5G and AI-fueled data center growth, backed by long-term leases and a strong balance sheet.

AMT has stabilized after past volatility, with strong fundamentals and accelerating growth expected as it laps tough international comparables and benefits from 5G rollouts. Current valuation (23x FFO, 3% yield) reflects optimism, but I see it as fully valued, offering market-like returns rather than clear outperformance. The market is underestimating long-term risks from satellite internet (e.g., Starlink), which could threaten the relevance of tower assets over time.

Times of stock market volatility often bring on a round of capital rotations that many investors overlook, even though these can be among the most aggressive signals the market provides to the world about what the “smart money” wants to buy ahead of major global economic developments. In today's uncertain environment, it appears that insiders have settled on the types of features they prefer for their portfolios moving forward.

American Tower's stock is now attractively valued after years of underperformance, with AFFO multiples reflecting temporary growth headwinds from Sprint churn. The tower business remains fundamentally strong, benefiting from high margins, low capex, and sticky tenants, with growth expected to accelerate post-2025. Sprint churn and India divestiture will pressure near-term results, but growth should resume at 7-10% annually starting in 2026, making current prices appealing.

American Tower Corporation is the #1 Ranked Telecom Tower, operating as a highly profitable real estate investment trust. AMT's business benefits from growing mobile device usage and data demand, driving high profitability and consistent dividend growth. Q1 2025 results were strong, with AFFO and revenue growth, but foreign currency losses impacted performance.

I'm bullish on the tech-enhanced real estate sectors—cell towers, data centers, and industrial REITs—driven by e-commerce and AI growth. My top picks are American Tower, Prologis, and Equinix, forming the 'APE' tech-trifecta for strong returns. Each REIT offers attractive valuations, robust growth prospects, and solid balance sheets, with forecasted annualized returns of 16-20%.

The REIT market is often slow to react to big changes. This can result in great opportunities for active investors. I present two undervalued REITs that I am buying ahead of the crowd.

American Tower remains a soft 'buy' due to its industry stability, steady growth, and strong cash flows despite premium valuation. Recent results show modest revenue growth, with data centers and services offsetting flat property revenue and regional currency headwinds. Leverage is lower than peers, and management's guidance points to continued solid cash flow and EBITDA for 2025.

Ron Kamdem, Morgan Stanley head of U.S. REITS and commercial real estate research, joins 'The Exchange' to discuss AI in CRE and the future of real estate.