American Tower (NYSE:AMT) saw its share-price surge 12.7% over the past three months as the rapid adoption of 5G technology fueled investors’ appetites for the REIT. However, given that its valuation and expenses are sky-high, will the company be able to continue riding the 5G wave or is it due for a retreat? Read more to find out.One of the largest global REITs, American Tower Corporation (AMT), is an owner and operator of wireless and broadcast communications infrastructure worldwide. Shares of AMT have soared 12.9% so far this year on elevated demand for its infrastructure. AMT has constructed nearly 2,000 new towers.
However, AMT’s stock price has slumped 0.5% over the past month. Closing yesterday’s trading session at $253.37, AMT’s stock is trading nearly 7% below its 52-week high.
While accelerating 5G deployment and rising global mobile data usage should drive recurring cash flows for the company, its valuation and expenses have moved to extreme heights. As such, we think the stock might witness a pullback in coming months.