Digital Realty Trust shares are trading lower after the company reported worse-than-expected Q4 FFO results and issued FY24 guidance below estimates. Also, Scotiabank downgraded the stock from Sector Outperform to Sector Perform.
Portfolio Pulse from Benzinga Newsdesk
Digital Realty Trust's shares dropped following disappointing Q4 FFO results and FY24 guidance below expectations. Additionally, Scotiabank downgraded the stock from Sector Outperform to Sector Perform.
February 16, 2024 | 1:47 pm
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NEGATIVE IMPACT
Digital Realty Trust's stock price is likely to face downward pressure in the short term due to disappointing Q4 FFO results and lower-than-expected FY24 guidance. The downgrade by Scotiabank could further impact investor sentiment.
The combination of missing financial expectations for Q4 and issuing guidance below market estimates typically results in negative investor sentiment and stock price decline. The downgrade by a major financial institution like Scotiabank can exacerbate this effect by signaling a loss of confidence among analysts, potentially leading to a broader sell-off.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100