LQAI0.580%
as of Jul 17
DLR
DefensiveDIGITAL REALTY TRUST
Digital Realty Trust, Inc. owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. The company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. As of March 31, 2026, the company's 309 data centers, including 89 data centers held as investments in unconsolidated entities, contain applications and operations critical to the day-to-day operations of technology industry and corporate enterprise data center customers.
Close · 3M
-1.89%
Held by 3 AI ETFs
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals3
Win rate33% (1/3)
Avg buy return-3.49%
LQAI · New entry · 1d
DLR's PER of 45.04 and 12.59% revenue growth align with LQAI's AI-driven approach, which balances growth characteristics rather than adhering to heavy factor tilts in its large-cap core universe. Despite a moderate ROE of 5.98% and a PBR of 2.34, these figures suggest a company with established operations that fits within the Qraft selection engine's criteria for inclusion. The AI initiated a 0.5700% position on July 7, 2026, after DLR experienced a -8.9% return over the prior 30 days, bringing its price to $174.90, 86% of its 52-week high. This timing indicates the AI identified DLR as a suitable new candidate, potentially capitalizing on the recent price correction while acknowledging its longer-term performance profile, including a -1.6% 1-year return and -0.8% over 90 days.
weight 0 → 0.570% (new)·stock down 7.3% in the 30 days before
Jul 7·entry $174.90·now $176.25Fresh
+0.77%
since Jul 7
QRFT · New entry · 1d
The AI ETF likely added DLR due to its strong 12.59% revenue growth, reflecting its strategic position as a data center REIT benefiting from increasing digital infrastructure and AI demand, despite its elevated PER. Retail investors should note that AI funds may prioritize thematic growth and future potential, even with higher valuations, but should independently evaluate if such growth-oriented, higher-risk investments align with their own portfolio strategy.
weight 0 → 0.160% (new)·stock up 9.3% in the 30 days before
May 4·entry $198.51·now $176.25Fresh
-11.21%
since May 4
AIEQ · New entry · 1d
weight 0 → 0.050% (new)·stock down 4.7% in the 30 days before
Jul 1·entry $176.32·now $176.25Fresh
-0.04%
since Jul 1
AIEQ · Exit · 1d
The AI ETF likely divested DLR due to its significantly high Price-to-Earnings Ratio of 50.82, indicating potential overvaluation, especially when paired with a relatively low Return on Equity of 5.98% despite decent revenue growth. Retail investors should consistently evaluate whether a company's growth prospects genuinely justify its current valuation and profitability, recognizing that even established companies can become overpriced relative to their fundamentals.
weight 0.200% → 0 (exited)·stock up 11.2% in the 30 days before
May 3·entry $198.51·now $176.25
-11.21%
since May 3
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 4
The AI ETF AIEQ has recently exited its position in Digital Realty Trust. This action aligns with the framework's 'Fail' verdict, which identifies significant concerns regarding the company's financial health and valuation. Both the AI's move and this analysis suggest DLR does not currently meet investment criteria.
- Circle of CompetenceThe predictable demand for data center infrastructure and long-term lease structures allow for reasonable projections of future cash flows.
- Economic MoatDigital Realty benefits from high switching costs for its enterprise customers and scale advantages in providing a global, interconnected data center platform.
- ManagementThere is insufficient information provided to assess management's candor, capital allocation strategy, or alignment of interests.
- Financial HealthThe reported Return on Equity (ROE) of 5.98% is well below the required 15% average and 10% single-year minimum, failing the profitability criterion.
- Margin of SafetyThe high P/E ratio of 50.82, combined with low profitability, does not suggest a sufficient margin of safety at the current price.
While Digital Realty Trust operates within a predictable industry and possesses a strong economic moat, its financial health is a significant concern due to very low Return on Equity. Furthermore, the current valuation ratios do not present a margin of safety, leading to an overall 'Fail' verdict from this framework.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.