Digital Realty Trust Stock Plummets -9.4% With 7-Day Losing Streak
Digital Realty Trust (DLR) stock hit day 7 of a continuous streak of days with losses, with cumulative losses over this period amounting to a -9.4% return. The company has lost about $6.1 Bil in value over the last 7 days, with its current market capitalization at about $59 Bil. The stock remains 13.7% below its value at the end of 2024. This compares with year-to-date returns of 14.3% for the S&P 500.
Digital Realty’s recent move reflects investor concern over its rich valuation, trading at 38x earnings versus peers’ 28.1x, compounded by a rise in bearish short interest. Lingering challenges with data center power availability and escalating operational costs also weigh on sentiment.
What is the point? Sustained weakness can be more than noise. It often signals shifting sentiment or deeper concerns. A multi-day losing streak may warn of further downside, or present an opportunity to buy if fundamentals are intact. Our take: There are only a couple of things to fear in DLR stock given its overall Strong operating performance and financial condition. Hence, together with its Very High valuation, this makes the stock look Risky (see Buy or Sell DLR).
For quick background, DLR provides comprehensive data center, colocation, and interconnection solutions through a global platform with trusted infrastructure and proven architecture for leading enterprises and service providers.
Comparing DLR Stock Returns With The S&P 500
The following table summarizes the return for DLR stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | DLR | S&P 500 |
|---|---|---|
| 1D | -1.3% | -1.2% |
| 7D (Current Streak) | -9.4% | -1.8% |
| 1M (21D) | -5.2% | 0.7% |
| 3M (63D) | -12.7% | 1.3% |
| YTD 2025 | -13.7% | 14.3% |
| 2024 | 35.9% | 23.3% |
| 2023 | 39.9% | 24.2% |
| 2022 | -41.0% | -19.4% |
Gains and Losses Streaks: S&P 500 Constituents
There are currently 24 S&P constituents with 3 days or more of consecutive gains and 63 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 9 | 17 |
| 4D | 2 | 35 |
| 5D | 2 | 9 |
| 6D | 5 | 0 |
| 7D or more | 6 | 2 |
| Total >=3 D | 24 | 63 |
Key Financials for Digital Realty Trust (DLR)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $5.5 Bil | $5.6 Bil |
| Operating Income | $727.5 Mil | $757.0 Mil |
| Net Income | $948.8 Mil | $602.5 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $1.5 Bil | $1.6 Bil |
| Operating Income | $234.2 Mil | $225.0 Mil |
| Net Income | $1.0 Bil | $67.8 Mil |
The losing streak DLR stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.