Why The GAP Inc. (GAP) Went Down On Friday?

We recently published a list of Friday’s 10 Worst Performing Stocks. In this article, we are going to take a look at where The GAP Inc. (NYSE:GAP) stands against other Friday’s worst performing stocks.

Wall Street’s main indices bounced back on Friday, erasing the entire week’s losses, as investor hopes were fueled by news that no government shutdown is happening.

The tech-heavy Nasdaq jumped the highest on Friday, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.

Ten companies, on the other hand, bucked an overall market optimism, posting modest losses during the day.

In this article, we have named the day’s worst performers and detailed the reasons behind their drop.

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

Photo by Erik Mclean on Unsplash

The GAP Inc. (NYSE:GAP)

Shares of GAP dropped by 3.03 percent on Friday, the fifth consecutive day, to end at $20.13 apiece as investors continued to dispose of positions in retail companies amid their potential risks from the ongoing trade tensions globally.

After pricing in the company’s better performance last year, the immediate sell-off showed that investors remained cautious about its business prospects despite providing an optimistic guidance for the year.

Last year, GAP saw fourth-quarter net income ended February 1, 2025, grow by 11.3 percent to $206 million from $185 million in the same period a year earlier, while net profit for the full year jumped by 68 percent to $844 million from $502 million year-on-year.

Meanwhile, revenues for the quarter dipped by 3 percent to $4.149 billion from $4.298 billion, while revenues for the full year inched up by 1.3 percent to $15.086 billion from $14.889 billion year-on-year.

Overall, GAP ranks 6th on our list of Friday’s worst performing stocks. While we acknowledge the potential of GAP 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 GAP 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.