GDS Holdings stock drops nearly 14% post-earnings report

GDS Holdings saw a drop of nearly 14% in its stock price today. This big sell-off came after the company released its latest earnings report. In contrast, the S&P 500 index rose over 1%. The Chinese company reported its fourth-quarter and full-year earnings for 2024. Revenue for the fourth quarter grew by 9% compared to the same time last year, reaching 2.69 billion yuan, or about $372 million. However, GDS also reported a net loss of over 173 million yuan, which is around $24 million. This loss was much smaller than the 3.07 billion yuan deficit in the same quarter of 2023. CEO William Huang commented on the company's performance, noting that GDS focused on delivering projects while being careful with new commitments. The company also shared its revenue forecast for 2025, expecting earnings between 11.29 billion yuan and 11.59 billion yuan. This would mean a growth of at least 9% compared to 2024. Despite the drop in stock price, some analysts believe the reaction was too harsh. They pointed out that while growth expectations for 2025 were lower than in previous years, the results were not bad enough to warrant such a sell-off. This situation might create a good opportunity for investors looking to buy shares in GDS Holdings.