The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
The past few years have not been kind to real estate investors. Despite the Federal Reserve cutting interest rates, 30-year mortgage rates remain historically elevated, and major homebuilders are seeing steep declines.
The current AI investment boom risks creating a bubble, with funding needs outpacing hyperscalers' cash flows and raising concerns of a lost decade for stocks. AI-related stocks have driven market gains, but overinvestment and high valuations make the S&P 500 (SPY) vulnerable to poor long-term returns. Dividend growth investors should focus on reasonably valued REITs and dividend stocks, which historically outperform during tech downturns.
American Tower Corp. offers an attractive valuation and nearly 4% yield after a strong Q3 earnings beat and raised guidance. AMT's fundamentals remain robust, with solid AFFO growth, strong balance sheet, and ongoing demand for mobile data and cell towers. Despite positive long-term prospects, I downgrade AMT from buy to hold due to sector re-rating and limited near-term upside potential.
American Tower offers a compelling opportunity for dividend investors, with its stock down 20% from its 2025 peak and robust fundamentals. AMT benefits from defensive, consumer-independent revenue streams, AI-driven data demand, and global 5G/data center expansion, supporting top line and AFFO growth. The company maintains a strong dividend track record, sustainable payout ratio, and improved balance sheet, appealing to income-focused investors, despite market volatility.
Consumers are about as pessimistic about the state of the economy as they have ever been, amid a weakening labor market, disruptions related to the fall 2025 government shutdown, and concerns about an AI bubble. Though the S&P 500 appears to be continuing its ascent, having climbed by almost 17% this year, it is not surprising that investors are growing cautious as they wait for a (potentially major) course correction.
AMT tops Q3 estimates with strong tenant billings, robust data center demand and an upbeat full-year FFO outlook.
American Tower Corporation (NYSE:AMT ) Q3 2025 Earnings Call October 28, 2025 8:30 AM EDT Company Participants Spencer Kurn Steven Vondran - President, CEO & Director Rodney Smith - Executive VP, CFO & Treasurer Conference Call Participants Michael Funk - BofA Securities, Research Division Nicholas Del Deo - MoffettNathanson LLC James Schneider - Goldman Sachs Group, Inc., Research Division Ric Prentiss - Raymond James & Associates, Inc., Research Division Eric Luebchow - Wells Fargo Securities, LLC, Research Division David Barden - New Street Research LLP Michael Rollins - Citigroup Inc., Research Division Richard Choe - JPMorgan Chase & Co, Research Division Benjamin Swinburne - Morgan Stanley, Research Division Presentation Operator Ladies and gentlemen, thank you for standing by. Welcome to the American Tower Third Quarter 2025 Earnings Conference Call.
Although the revenue and EPS for American Tower (AMT) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
American Tower (AMT) came out with quarterly funds from operations (FFO) of $2.78 per share, beating the Zacks Consensus Estimate of $2.62 per share. This compares to FFO of $2.64 per share a year ago.
American Tower REIT swung to a third-quarter profit on strong revenue growth and ratcheted up its 2025 earnings projection.
AMT's Q3 revenues are likely to have risen on 5G rollout, cloud growth and macro-tower investments, though AFFO per share may have slightly dipped.