Why GDS Holdings Ltd. (GDS) Went Down On Thursday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where GDS Holdings Ltd. (NASDAQ:GDS) stands against other Wednesday’s worst performers.

Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let’s take a look at the 10 worst-performing stocks and explore the reasons behind their drop.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

A top level executive looking out of a skyscraper window, symbolizing the strategic decisions taken by the company.

GDS Holdings Ltd. (NASDAQ:GDS)

GDS Holdings snapped a three-day winning streak on Wednesday, losing 13.97 percent to close at $30.61 each as investors soured on the company’s missed revenue estimates during the last quarter.

In its latest earnings release, GDS reported first-quarter earnings per share of -Y1.89, better than the -Y3.04 as expected by analysts.

The drop showed investors shunning the company’s impressive earnings performance, with the GDS swinging to a net income attributable to shareholders of RMB4.19 billion from a RMB3.16 billion net loss in the fourth quarter of 2024, as revenues grew 9.34 percent to RMB2.69 billion from RMB2.46 billion.

Meanwhile, net income attributable to shareholders for the full year of 2024 stood at RMB3.4 billion, reversing a net loss of RMB4.29 billion year-on-year, as revenues increased 5.3 percent to RMB10.3 billion from RMB9.78 billion.

Overall, GDS ranks 2nd on our list of Wednesday’s worst performers. While we acknowledge the potential of GDS 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 as promising as GDS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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