Why The Gap Inc. (GAP) Went Down On Thursday?

We recently published a list of 10 Firms Take a Beating on Tariff Worries. In this article, we are going to take a look at where The Gap Inc. (NYSE:GAP) stands against other Thursday’s worst performers.

Wall Street’s three major indices suffered a bloodbath on Thursday as investors continued to digest news of President Donald Trump’s tariff rollout on imports.

The tech-heavy Nasdaq fell the heaviest, down by nearly 6 percent. The S&P 500 dropped by 4.84 percent and the Dow Jones was down by 3.98 percent.

Ten individual stocks, predominantly under the retail sector, mirrored a broader market pessimism, finishing the day in the negative territory as investors sold off positions to mitigate risks.

In this article, we named Thursday’s worst performers 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.

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The Gap Inc. (NYSE:GAP)

The Gap Inc. dropped its share prices by 20.29 percent on Thursday to end at $17.84 apiece as investors parked funds to mitigate the risks from looming higher costs brought about by the ongoing trade war.

GAP traded lower in line with the decline in the apparel industry following President Donald Trump’s “reciprocal” tariffs on imports, which includes major suppliers in the fashion industry.

Vietnam was slapped with a 46-percent tariff, Bangladesh, 37 percent; China, 34-percent tariff; and the EU, 20 percent.

Last month, GAP CEO Richard Dickson told Yahoo Finance that the company was monitoring the developments of tariffs “on an hourly basis.”

“We source less than 10 percent of our product from China and less than 1 percent of our product comes from Canada and Mexico combined. So our guidance contemplates what we know today regarding the tariff policy,” he was quoted as saying earlier.

Overall, GAP ranks 6th on our list of Thursday’s worst performers. While we acknowledge the potential of GAP 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 GAP 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.