Core Viewpoint - Iron Mountain Incorporated (IRM) is experiencing a divide among investors, with bullish perspectives focusing on rapid growth and low AFFO multiples, while bearish views highlight concerns over high debt and AFFO calculations [1] Bear Thesis - The stock price of IRM has dropped significantly due to three main reasons: overvaluation, being affected by the AI selloff, and a short attack [4][7] - The company has transitioned from physical information storage to digital management, which has led to its classification as a data center REIT, although this segment remains a small part of its business [5][6] Financial Overview - As of September 30, 2025, IRM's total assets amounted to $20.63 billion, with current assets at $1.88 billion and total liabilities at $18.77 billion [9] - The company has a significant operating lease liability of $2.28 billion, which is not classified as debt, as it represents long-term rental obligations [10][11] - IRM's reported AFFO may be inflated, but the company provides transparent reconciliations to clarify its financial metrics [14][16] Earnings and Adjustments - In Q3 2025, IRM reported a net income of $86.24 million, with FFO (Nareit) at $198.31 million, reflecting a year-over-year increase of 192.7% [18] - The company’s AFFO for Q3 2025 was reported at $393.32 million, up 18.5% year-over-year [22] - Adjustments to AFFO calculations include considerations for stock-based compensation and non-real estate depreciation, which could lower the true AFFO by approximately $320 million [25][21] Growth Prospects - IRM has demonstrated strong growth across various business segments, with pricing power in its legacy records information management business contributing to its growth [28] - Analysts project continued strong growth through 2028, supported by the company's data center builds and information management services [34][36] Valuation - IRM is currently trading at 14X forward AFFO and 16X trailing AFFO, which may be undervalued given its growth rate [38] - Adjusting for true AFFO, the forward multiple could be around 17.23X, indicating an attractive valuation for a company growing at approximately 11% [41][42]

Group 1: Market Performance - Major U.S. equities indexes gained, with the S&P 500 advancing 0.5% to a record closing high, and the Nasdaq Composite also reaching its highest-ever closing level with a 0.5% gain [2][10] - The Dow increased by 1% on the same day [2] Group 2: Trade Developments - U.S. and China agreed on a trade framework, confirming earlier details, while President Trump ended trade talks with Canada [3] Group 3: Company Performances - Nike shares surged 15% after reporting smaller-than-expected sales and profit declines, indicating progress in its turnaround plan under CEO Elliott Hill [4] - Boeing shares rose 5.9% following trade progress with China, with analysts upgrading the stock to "buy" due to improved production and financial outlook [5] - Equinix shares gained 5.3% despite previous losses, benefiting from demand for data center services driven by AI adoption [6] - Palantir Technologies shares fell over 9% due to easing geopolitical tensions and a decrease in the Department of Defense's budget request for fiscal 2026 [7] - Coinbase Global shares dropped 5.8% after ARK Innovation ETF sold 33,000 shares, despite recent positive developments in the crypto space [8] - Enphase Energy shares declined 4.9% after a reversal of gains related to Senate budget bill discussions affecting solar companies [9] - Newmont shares fell 4.1% as gold prices decreased amid improved U.S.-China trade relations [10]