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Data centers are the lifeblood of the artificial intelligence (AI)-powered digital world, but some tech giants appear to be tapping the brakes on their data center spend. For instance, e-commerce behemoth Amazon’s (AMZN) shares slipped over 3% on April 21 after Wells Fargo revealed that its AWS division is pausing parts of its global data center leasing activity. Analyst Eric Luebchow described the move as a temporary pullback rather than a strategic shift, suggesting AWS is simply digesting a flurry of recent lease deals, similar to Microsoft's (MSFT) recent slowdown.
Still, the news of this pullback has sparked fresh concerns among investors about whether the red-hot hyperscale buildout is starting to cool. Luebchow also acknowledged that it’s uncertain whether Amazon's move signals deeper challenges or is “just the natural ebbs and flows of hyperscale activity.”
Either way, while Amazon takes a pause on its data center expansion plans, another data center REIT is catching Wall Street’s attention and has also been labeled a consensus “Strong Buy” by analysts. So, here’s a closer look at this name.
About American Tower Stock
American Tower (AMT) is among the largest global REITs and it owns and operates close to 149,000 communications sites worldwide. Its portfolio also includes a network of interconnected U.S. data center facilities, reflecting its growing presence in both wireless and digital infrastructure markets.
Valued at $103 billion, shares of the data center REIT are defying the broader market’s downturn in 2025. While the broader S&P 500 Index ($SPX) has slipped 6.3% year-to-date, shares of American Tower have surged almost 22% this year, marking a standout performance in a tough market.
REITs are known for their consistent income streams, and this one is no exception. On March 6, the company declared a quarterly distribution of $1.70 per share. On an annualized basis, American Tower dishes out $6.80 per share, which offers an enticing 3% yield.
A Closer Look at American Tower’s Q1 Performance
In the first quarter of 2025, American Tower reported a 2% year-over-year increase in total revenue, reaching $2.56 billion. This growth was primarily driven by sustained demand in its leasing business, with the property segment contributing $2.49 billion, accounting for 97% of total revenue.
Despite the revenue growth, net income attributable to common stockholders decreased by 46.7% to $489 million, or $1.04 per diluted share. This decline was largely due to foreign currency losses impacting the quarter’s earnings.
Adjusted funds from operations (AFFO) came in at $2.75 per share, a slight decrease from $2.79 per share a year earlier. However, on an adjusted basis, AFFO per share increased by 6.6%.
Looking ahead, American Tower raised its full-year 2025 property revenue forecast to a range of $9.97 billion to $10.12 billion. This upward revision reflects favorable foreign currency exchange rates and continued demand for telecom infrastructure leasing.
What Do Analysts Expect for American Tower Stock?
Wall Street is buzzing with optimism for AMT stock, holding a consensus “Strong Buy” rating overall.
Of the 23 analysts offering recommendations, 17 advocate a “Strong Buy,” two give a “Moderate Buy,” and the remaining four suggest a “Hold.” The average analyst price target of $236 represents potential upside of 5.3%, while the Street-high target of $250 suggests an 11.6% rally from current levels.
