Does MM like the “Digital Infrastructure space”?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 25/06/2022

Does MM like the “Digital Infrastructure space”?

Hi James and Team, website 3.0 looks great and I can't wait to spend some time sinking my teeth in. I was wondering if you could provide an update on the digital infrastructure industry on the whole and in particular AMT and CCI. I am particularly keen to know if their leases are linked to CPI and how they should fare in a continuing high inflation environment. Gogo the inflight WiFI business for private aviation is another company that has caught my eye, I was interested to know if you had any thoughts on the company and its potential. (General Advice Only) Thanks in Advance.

Answer

Hi Jack & thanks for the positive take on the site.

I’m not sure about CCI and AMT, could you be more specific on these companies – from my search these codes don’t relate to digital infrastructure companies. As a general comment, we like the space and have recently been running the ruler over data centre provider NextDC (NXT) after a deep correction – we think this is an area that private equity will also be looking at.

chart

American Tower Corp (AMT US)

LAST UPDATED 24/06/2022 16:07

Latest Reports

Afternoon report 24/04/2024

The Match Out: CPI dents equity rally ahead of ANZAC Day

Equities followed the US market higher this morning, also adding a little premium thanks to a handful of positive quarterly reports that were announced after the North American markets closed. That all took a back seat as inflation data printed late morning, CPI coming in hotter than expected which sent the market into a spin, falling ~0.6% at the time before finding some relief. In the end, the index closed little changed, a good result given the circumstances though largely thanks to support from the Big 4 banks.

Morning report 24/04/2024

Portfolio Positioning: Bonds fell, dragging stocks along for the ride, both are now basing in our opinion

Bond markets have struggled over recent weeks as inflation appeared increasingly “sticky,” but it hardly registers on the chart compared to their weakness through 2021/2 and mid-2023. We believe the local credit markets have come back to realistic levels as the RBA awaits further economic data to deliver clarity on the underlying strength and direction of the local economy. Traders have gone from being far too optimistic on rate cuts into Christmas to becoming almost pessimistic; the US futures markets have gone from pricing in three cuts to 1.77 cuts, or one definitely, and probably two.