Digital Realty Trust is Poised to Grow Rapidly as Enterprises Transform to the Cloud
September 1, 2022
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Digital Realty Trust($NYSE:DLR) is a global data center REIT that is poised to ride the long-term growth trends in the digital transformation of enterprises. The cloud computing market is estimated to grow at a rapid 15.8% CAGR between 2022 and 2028, reaching over $1 trillion by the end of the period. As enterprises increasingly move to the cloud, demand for data centers will continue to grow. Digital Realty is well-positioned to benefit from this trend, with a portfolio of data centers around the world. The company’s earnings are expected to grow at a rapid pace in the coming years, as enterprises continue to transform their businesses to the cloud.
Market Price
On Tuesday, the company’s stock opened at $124.0 and closed at $123.8. The company’s data center solutions are among the most reliable and efficient in the industry, and its experienced team is well-positioned to help companies make a smooth transition to the cloud.
VI Analysis
Digital Realty Trust is a real estate investment trust that owns, acquires, develops and operates data centers. The company’s fundamentals reflect its long term potential, and the VI Star Chart shows that it has a high health score of 7/10, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. It is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Dividend paying companies are deemed less risky as they pursuit growth at a sustainable rate.
Summary
Digital Realty Trust is a real estate investment trust that focuses on data centers and colocation facilities. The cloud is one of the most disruptive forces in the technology industry today. As enterprises shift more of their workloads to the cloud, they require more data center capacity to store and process their data. This is creating a tremendous opportunity for data center REITs like Digital Realty Trust. It has acquired several data center portfolios in recent years and has been developing new data centers to meet the growing demand for cloud services. The company is also expanding its international footprint to meet the needs of global enterprises.
