Why GXO Logistics, Inc. (GXO) Went Down on Thursday

We recently compiled a list of the Weak Earnings, Outlook Drag Shares of These 10 Firms on Thursday. In this article, we are going to take a look at where GXO Logistics, Inc. (NYSE:GXO) stands against the other stocks.

The stock market finished firmer on Thursday, as investors cheered fresh inflation data and tariff updates that helped alleviate concerns about inflationary pressures and global trade tensions.

The Dow Jones rose by 0.77 percent, the S&P 500 increased 1.04 percent, while the Nasdaq jumped 1.50 percent.

Despite overall market gains, ten companies managed to register declines, mostly due to disappointing earnings performance, a weaker outlook, and downgraded ratings.

To come up with Thursday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A fleet of trucks leaving a depot, loaded with consumer goods, representing the companies logistical services.

GXO Logistics, Inc. (NYSE:GXO)

GXO Logistics, Inc. (NYSE:GXO) nosedived by 15.08 percent on Thursday, ending the day at $36.31 apiece as investor sentiment was dampened by a soft 2025 outlook, coupled with mixed earnings performance in 2024.

In a statement, GXO Logistics, Inc. (NYSE:GXO) said attributable net income in the fourth quarter of 2024 jumped 37 percent to $100 million from $73 million, as revenues grew by 25 percent to $3.25 billion from $2.59 billion.

However, net income in full year 2024 fell 41 percent to $134 million from $229 million in 2023, despite revenues growing 19.6 percent to $11.7 billion from $9.78 billion.

For 2025, the company expects organic revenues to grow between 3 to 6 percent.

“Our guidance for 2025 reflects our confidence in our core business growth, the phasing of startups, the impact of foreign exchange, and our current expectation of the timing of the Wincanton regulatory review. The strength of our pipeline and the pace of our new business wins continue to benefit from the structural tailwinds—outsourcing, automation, and e-commerce—at our backs,” said GXO Logistics, Inc. (NYSE:GXO) CEO Malcolm Wilson.

Overall GXO ranks 4th on our list of Thursday’s top losers. While we acknowledge the potential of GXO 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 timeframe. If you are looking for an AI stock that is more promising than GXO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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