What Happened?
Shares of digital infrastructure investor DigitalBridge Group (NYSE:DBRG) jumped 3.3% in the afternoon session after the stock's positive momentum continued as reports surfaced that SoftBank Group was in discussions to acquire the company, prompting an analyst price target increase.
The stock's movement extended a significant 45% rally from the previous trading session, which was also driven by the acquisition news. Following the initial reports, RBC Capital raised its price target on DigitalBridge to $23 from $19 while keeping an Outperform rating on the stock. According to reports, the Japanese investment group was considering acquiring the digital infrastructure asset manager and taking it private. DigitalBridge manages investments in data centers, mobile towers, and fiber networks, an area of interest for SoftBank as it seeks to expand its AI-linked portfolio.
The shares closed the day at $14.99, up 5.2% from previous close.
Is now the time to buy DigitalBridge? Access our full analysis report here.
What Is The Market Telling Us
DigitalBridge’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 39.9% on the news that reports surfaced that SoftBank Group was in advanced talks to acquire the digital infrastructure investment firm. According to the reports, the Japanese conglomerate was negotiating a potential deal to buy the private equity firm and take it private. This move was seen as an effort by SoftBank to capitalize on the rising demand for the technology and computing power that support artificial intelligence applications. DigitalBridge focuses on investments in digital infrastructure, including data centers, which are vital for the AI boom. While discussions were reportedly ongoing, sources noted that no final agreement had been reached.
DigitalBridge is up 35.2% since the beginning of the year, and at $14.99 per share, has set a new 52-week high. Investors who bought $1,000 worth of DigitalBridge’s shares 5 years ago would now be looking at an investment worth $763.19.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report.