We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
If You Invested $1000 in American Tower 10 Years Ago, This Is How Much You'd Have Now
Read MoreHide Full Article
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in American Tower (AMT - Free Report) ten years ago? It may not have been easy to hold on to AMT for all that time, but if you did, how much would your investment be worth today?
American Tower's Business In-Depth
With that in mind, let's take a look at American Tower's main business drivers.
Boston, MA-based American Tower Corporation is a leading independent operator of wireless communications towers. The company leases space on its communication sites to tenants and offers a range of tower-related services. Its tenants include wireless service providers, broadcasters and other communication service providers. It is also an S&P 500 constituent.
As of Sep 30, 2023, American Tower had a global portfolio of nearly 225,000 communication sites spread across 25 countries. The company’s communication sites included 42,983 in the United States & Canada, 78,088 in the Asia Pacific, 23,931 in Africa, 30,969 in Europe and 48,559 in Latin America. As of the same date, American Tower’s portfolio included 28 operating data center facilities across 10 markets in the United States encompassing 3.2 million net rentable square feet of data center space.
In December 2021, American Tower completed the CoreSite buyout, through which it acquired more than 20 data center facilities and related assets in eight U.S. markets for a total consideration of $10.4 billion, including the assumption and repayment of CoreSite’s existing debt. With this, American Tower capitalized on CoreSite’s highly interconnected data center facilities and critical cloud on-ramps and banks on the robust demand from enterprises, the cloud, network, and IT service providers in the major U.S. markets.
American Tower reports under the Property segment (98.5% of its total revenues for the nine months ended Sep 30, 2023) and the Service segment (1.5%). The Property segment includes the U.S. & Canada property, Asia-Pacific property, Africa property, Europe property and Latin America property segments and the Data Centers segment. The Service segment offers tower-related services in the United States, including site application, zoning and permitting and structural analysis, which primarily support the company’s site-leasing business, including the addition of new tenants and equipment at sites.
Note: All EPS numbers presented in this report represents funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation, amortization, and other non-cash expenses to net income.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in American Tower a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $2,642.33, or a 164.23% gain, as of December 12, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 159.36% and the price of gold increased 55.20% over the same time frame in comparison.
Analysts are forecasting more upside for AMT too.
American Tower owns an extensive and geographically diversified communication real estate portfolio. The high capital spending by wireless carriers amid the incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions positions it well for growth. A resilient and stable business model assures stable revenues. The company’s continued focus on macro-tower investments to expand its global footprint and address the demand in these markets augur well for long-term growth. For 2023, we expect year-over-year growth of 3.4% and 5.7% in total revenues and adjusted EBITDA, respectively. However, customer concentration and consolidation in the wireless industry raise concerns. High interest rates add to its woes. We estimate a year-over-year rise of 23.9% in the company’s interest expenses this year.
Shares have gained 11.97% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
If You Invested $1000 in American Tower 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in American Tower (AMT - Free Report) ten years ago? It may not have been easy to hold on to AMT for all that time, but if you did, how much would your investment be worth today?
American Tower's Business In-Depth
With that in mind, let's take a look at American Tower's main business drivers.
Boston, MA-based American Tower Corporation is a leading independent operator of wireless communications towers. The company leases space on its communication sites to tenants and offers a range of tower-related services. Its tenants include wireless service providers, broadcasters and other communication service providers. It is also an S&P 500 constituent.
As of Sep 30, 2023, American Tower had a global portfolio of nearly 225,000 communication sites spread across 25 countries. The company’s communication sites included 42,983 in the United States & Canada, 78,088 in the Asia Pacific, 23,931 in Africa, 30,969 in Europe and 48,559 in Latin America. As of the same date, American Tower’s portfolio included 28 operating data center facilities across 10 markets in the United States encompassing 3.2 million net rentable square feet of data center space.
In December 2021, American Tower completed the CoreSite buyout, through which it acquired more than 20 data center facilities and related assets in eight U.S. markets for a total consideration of $10.4 billion, including the assumption and repayment of CoreSite’s existing debt. With this, American Tower capitalized on CoreSite’s highly interconnected data center facilities and critical cloud on-ramps and banks on the robust demand from enterprises, the cloud, network, and IT service providers in the major U.S. markets.
American Tower reports under the Property segment (98.5% of its total revenues for the nine months ended Sep 30, 2023) and the Service segment (1.5%). The Property segment includes the U.S. & Canada property, Asia-Pacific property, Africa property, Europe property and Latin America property segments and the Data Centers segment. The Service segment offers tower-related services in the United States, including site application, zoning and permitting and structural analysis, which primarily support the company’s site-leasing business, including the addition of new tenants and equipment at sites.
Note: All EPS numbers presented in this report represents funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation, amortization, and other non-cash expenses to net income.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in American Tower a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $2,642.33, or a 164.23% gain, as of December 12, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 159.36% and the price of gold increased 55.20% over the same time frame in comparison.
Analysts are forecasting more upside for AMT too.
American Tower owns an extensive and geographically diversified communication real estate portfolio. The high capital spending by wireless carriers amid the incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions positions it well for growth. A resilient and stable business model assures stable revenues. The company’s continued focus on macro-tower investments to expand its global footprint and address the demand in these markets augur well for long-term growth. For 2023, we expect year-over-year growth of 3.4% and 5.7% in total revenues and adjusted EBITDA, respectively. However, customer concentration and consolidation in the wireless industry raise concerns. High interest rates add to its woes. We estimate a year-over-year rise of 23.9% in the company’s interest expenses this year.
Shares have gained 11.97% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.