The world is becoming more digital. This trend has been taking place ever since humanity came up with its first technologies. While our first technologies may have been copper tools, we have evolved significantly over thousands of years. We went from copper tools to machinery and now, digital tools.
Thanks to computers, the world wide web, and the internet, we have quite a bit of activity that take place over the internet. From obtaining a car on-the-go through Uber,to renting a place to stay for the night through Airbnb, we see amazing changes taking place regularly.
In such a scenario, it makes sense to look at companies that are thinking about technology infrastructure and making sure to act as global digital infrastructure providers. One such firm is Digital Bridge or the Digital Bridge Group (NASDAQ: DBRG). This firm is a real estate investment trust that has over 20 years of experience in managing and operating corporations within the digital world. These infrastructure businesses include data centers to that of edge infrastructure.
Here is what you need to know about Digital Bridge.
The Digital Bridge Team Is Responsible for Over $30 Billion in Digital Infrastructure Assets
The firm has been active recently with a respectable acquisition. It purchased CA22, a large scale data center in the California region. While it may seem like a small transaction, worth in the neighborhood of $540 million, it does show that this digital infrastructure provider is serious about staying relevant over the long term in many markets.
The company will fund the transaction with a mixture of cash and debt.
More technologies that range from connected electric vehicles to significant worldwide global traffic. While the pandemic is slowing and the online boom might scale down a little bit, it is true that technology and connectivity is here to stay. Firms that range from Apple to Google, Microsoft and Facebook, among a slew of other firms continue to cater to a growing base of users.
Prospects of Digital Bridge?
It looks financial experts think that this firm and its stock has a bit more to run. The consensus is that Digital Bridge’s stock should run to at least $9. Its current share price is in the $6-$7 range.
The critical reasons why investors appreciate this company is because it is operating as an asset management firm and an operator. It invests in
– Data Centers (100)
– Fiber Networks (130,00 route miles)
– Macro Cell Towers
– Edge Infrastructure ((around 400))
– Small cell networks ((80,000 nodes)
It has a digital portfolio of 22 companies that it seeks to manage. The firm acts as an asset manager/investor, similar to Blackstone, Brookfield, and KKR, and it takes on similar roles as Equinix, Digital Realty, and American Towers.
Firms like this that focus on the infrastructure will be critical as the world shifts to fully digital. The infrastructure certainly matters with regard to blockchain, IoT, autonomous vehicles and other trends that all rely on technological growth.