DLR · DIGITAL REALTY TRUST

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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

-11.75%

Held by 1 AI ETF

AIEQ0.050%

as of Oct 26

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 signals4

Win rate0% (0/4)

Avg buy return-4.86%

AIEQnow 0.050% of fund4 signals

AIEQ · New entry · 1d

weight 0 → 0.050% (new)·stock down 8.6% in the 30 days before

Oct 1·entry $176.49·now $172.37Fresh

-2.33%

since Oct 1

AIEQ · Exit · 1d

weight 0.050% → 0 (exited)·stock up 6.9% in the 30 days before

Aug 2·entry $191.22·now $172.37

-9.86%

since Aug 2

AIEQ · New entry · 1d

weight 0 → 0.050% (new)·stock down 4.7% in the 30 days before

Jul 1·entry $176.32·now $172.37Fresh

-2.24%

since Jul 1

AIEQ · Exit · 1d

weight 0.200% → 0 (exited)·stock up 11.2% in the 30 days before

May 3·entry $198.51·now $172.37

-13.17%

since May 3

LQAIno longer held4 signals

LQAI · Exit · 1d

weight 0.630% → 0 (exited)·stock up 9.2% in the 30 days before

Aug 6·entry $192.56·now $172.37

-10.49%

since Aug 6

LQAI · Weight decrease · 2d

weight 0.650% → 0.630% (-0.020 pp)·stock up 6.9% in the 30 days before

Jul 31·entry $188.52·now $172.37

-8.57%

since Jul 31

LQAI · Weight increase · 2d

weight 0.580% → 0.660% (+0.080 pp)·stock up 3.1% in the 30 days before

Jul 24·entry $199.08·now $172.37Fresh

-13.42%

since Jul 24

LQAI · New entry · 1d

weight 0 → 0.570% (new)·stock down 7.3% in the 30 days before

Jul 7·entry $174.90·now $172.37Fresh

-1.45%

since Jul 7

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.