Why GDS Stock Plummeted This Week
Portfolio Pulse from
GDS Holdings, a China-based data center company, reported fourth-quarter earnings of $3.08 per ADS on $368.6 million revenue. While revenue grew 9.1% year-over-year, the profit was from one-time accounting events, and the company posted a $23.8 million loss from continuing operations. The company's 2024 guidance suggests around 11% sales growth, which was lower than investor expectations.
March 23, 2025 | 4:00 am
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Investors reacted negatively to GDS's Q4 earnings and 2024 guidance, leading to a significant stock price decline despite strong annual performance.
The stock price dropped due to lower-than-expected growth guidance, one-time accounting profits, and operational losses. However, the long-term potential in AI and data center services provides some optimism.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100