Why American Tower Stock Rose 15% in the First Half of 2020
Shares of real estate investment trust (REIT) American Tower Corporation (NYSE: AMT) advanced 15% through the first six months of 2020, according to data from S&P Global Market Intelligence. That's pretty impressive compared to the average REIT, as measured by Vanguard Real Estate ETF, which was down roughly 15%. That said, the period was really broken into two parts. When the market fell into bear territory in the first quarter, American Tower lost about 20% of its value. Following that drop, however, the REIT's shares recovered all of their losses and then some, while many other REITs continued to languish.
American Tower is not your typical REIT. It doesn't own office buildings, apartments, or stores, all of which are facing notable issues related to the spread of COVID-19. American Tower, as its name implies, owns cellular towers. That's a very different business and one that hasn't seen much of an impact from the coronavirus. If anything, being able to stay in touch via a cellular connection has become even more important. Meanwhile, there's an industry switch taking place that is benefiting the company's business as cell providers upgrade to 5G.
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Source Fool.com
