Here’s Why American Tower Corporation (AMT) Fell in Q3

Baron Funds, an investment management company, released its “Baron Real Estate Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund delivered strong results in the quarter. The fund appreciated 10.25% (Institutional Shares) compared to the MSCI US REIT Index’s (the REIT Index) 4.49% and the MSCI USA IMI Extended Real Estate Index’s 5.65%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as American Tower Corporation (NYSE:AMT). American Tower Corporation (NYSE:AMT) is a leading independent multitenant communications real estate operator. The one-month return of American Tower Corporation (NYSE:AMT) was -2.76%, and its shares lost 5.31% of their value over the last 52 weeks. On November 11, 2025, American Tower Corporation (NYSE:AMT) stock closed at $184.79 per share, with a market capitalization of $86.509 billion.

Baron Real Estate Fund stated the following regarding American Tower Corporation (NYSE:AMT) in its third quarter 2025 investor letter:

“After robust performance in the first six months of the year, shares of American Tower Corporation (NYSE:AMT), a global REIT owner of 150,000 wireless tower communication sites with a heavy emphasis on developed markets, pulled back during the third quarter and lagged REITs broadly. Underperformance was driven by a slight delay in U.S. billings from 2025 to 2026 along with investor concerns about the contractual commitments of a small customer (DISH) and associated potential churn impacts after EchoStar Corporation divested its U.S. spectrum licenses.

While we acknowledge the market’s concerns, we believe American Tower’s shares remain attractively valued on an absolute basis and relative to other data infrastructure companies and most REITs. Further, the company’s business is underpinned by the continued secular growth in mobile data, bookings activity which is improving, and we believe the company will be able to deliver consistent mid- to upper single-digit underlying per share organic earnings growth with optionality around capital allocation levers such as share repurchases and acquisitions on top of a growing 3.5% current dividend yield.”

American Tower Corporation’s (AMT) Dividend Strength and Valuation Make it a Strong Buy in 2025

American Tower Corporation (NYSE:AMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 70 hedge fund portfolios held American Tower Corporation (NYSE:AMT) at the end of the second quarter, compared to 73 in the previous quarter. While we acknowledge the risk and potential of American Tower Corporation (NYSE:AMT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than American Tower Corporation (NYSE:AMT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered American Tower Corporation (NYSE:AMT) and shared the list of best consistent dividend stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.