Analyst Note| Matthew Dolgin, CFA |
Digital Realty beat FactSet consensus revenue and EBITDA estimates in the second quarter and delivered another period of strong bookings across all geographies. Most encouraging to us is that the strength in Digital’s business is centered on smaller deployments and connectivity, the types of services it historically didn’t provide but has entered via acquisitions in the last several years. We believe the ability to connect enterprises (smaller deployments) to hyperscalers like cloud providers is what makes data centers differentiated and that the ability to do it on a global scale is attractive for customers. Digital’s portfolio seems to be in the sweet spot to provide these abilities, and we think it can close the gap with Equinix as the premier global data center provider for connectivity.