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

We recently published a list of Tuesday’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where GDS Holdings Ltd. (NASDAQ:GDS) stands against other Tuesday’s worst-performing stocks.

Wall Street’s main indices suffered a bloodbath on Tuesday, recording steep losses amid the looming deadline for President Donald Trump’s new round of tariffs for China that would see the latter slapped with a cumulative 104-percent import tax.

The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500’s 1.57 percent decline, and the Dow Jones’ 0.84-percent drop.

Ten companies mirrored the broader decline, recording hefty losses during the day. In this article, we listed the 10 worst-performing names and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $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 extended its losing streak for a fourth straight day on Tuesday, losing 14.34 percent to end at $17.68 apiece as investors continued to sell off positions in Chinese stocks amid the ongoing US-China trade war.

GDS is a leading developer and operator of high-performance data centers in China. 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 Tuesday’s worst-performing stocks. While we acknowledge the potential of GDS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GDS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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