Disclaimer: This analysis is for our subscribers’ information only. It does not constitute a recommendation to either buy or sell securities of any of these infrastructure companies. This article is an excerpt from Inside Towers Intelligence, our quarterly market research report.
The Digital Infrastructure Value Index is a proprietary monitoring instrument developed by Inside Towers Intelligence. The Index is an indication of the composite normalized value of a select group of 14 digital infrastructure companies’ stock prices as a whole over a moving 52-week interval. The Index comprises:
- Tower companies – American Tower (NYSE: AMT), Crown Castle (NYSE: CCI), SBA Communications (NASDAQ: SBAC)
- Fiber companies – Frontier Communications (NASDAQ: FYBR), Lumen Technologies (NYSE: LUMN), Uniti Group (NASDAQ: UNIT)
- Data center operators – Equinix (NASDAQ: EQIX), Digital Realty Trust (NYSE: DLR), Iron Mountain (NYSE: IRM)
- Cable companies – Altice USA (NYSE: ATUS), Charter Communications (NASDAQ: CHTR), Comcast (NASDAQ: CMCSA)
- Diversified infrastructure companies – Brookfield Infrastructure Partners (NYSE: BIP), DigitalBridge Group (NYSE: DBRG).
For the week ending April 5, the 14 companies in our Index had an aggregate market capitalization of $525 billion, down by $26 billion or five percent from the prior week’s level of $551 billion. Within that aggregate, Towercos dropped by four percent, Data Centers slid by three percent, Fibercos plummeted by eight percent, Cablecos declined by six percent and Diversified Infracos fell by seven percent.
Note that the aggregate stock price of these 14 companies has grown by an average of eight percent over the 52-week period prior to the April 5 market close even as the normalized Index declined by one percent over the same period.
Analysis: Concerns and uncertainties around continuing inflation and high interest rates along with supply chain delays seem to be subsiding. Vendors and contractors are reporting growing product and service demand through the latter half of 2024 and into 2025. Still, mobile and fixed network expansion remains at low pace except among data centers. Anticipated government funding programs have yet to kick in. And there are some investor concerns about more government oversight on tech companies and the impact on operating companies if net neutrality rules are reimposed.
Methodology: We record the stock price of each company at the market close on Friday of each week. The sum of these stock prices is normalized to a reference benchmark level of 100, over the 52-week interval. The portion of the curve above the benchmark level suggests overall business growth, positive stock performance and value creation.
The Digital Infrastructure Value Index is a proprietary feature of Inside Towers Intelligence, our quarterly market research report that does a deep dive into all aspects of the digital infrastructure business with analyses that are not generally available from any other sources. Intelligence is designed for managers, marketers, and investors.
For more information, or to subscribe, visit: www.insidetowers.com/intelligence.
By John Celentano, Inside Towers Business Editor
