Digital Realty (DLR)

DLR's price sits below all three of its key longer-term averages for the first time in months.

What is going on right now?

Digital Realty's share price, around $175, has drifted below where it traded on average over the past 20, 50, and 200 days. The stock has been moving sideways without much energy in either direction lately.

How is the business itself doing?

The company rents out massive warehouse-like buildings filled with servers. Its revenue grew about 30%, but its reported profit dropped roughly 59%. It still generated about $3.8 billion in cash from operations, though it's paying out more in dividends than it earns right now.

What stands out?

Meta recently signaled it may spend up to $145 billion on AI infrastructure, and that kind of spending often flows toward data-center landlords like Digital Realty. Separately, reports suggest that rising expectations for higher interest rates could squeeze the returns on companies structured the way DLR is.

What comes next?

DLR's next earnings report lands on October 29, and it will be the first look at whether that big revenue growth is translating into actual profit improvement.