Why GDS Holdings Stock Is Plummeting Today
GDS (NASDAQ: GDS) stock is getting crushed in Tuesday's trading. The Chinese data center company's share price was down 26.5% as of 2 p.m. ET, according to data from S&P Global Market Intelligence.
GDS published its fourth-quarter earnings results before the market opened this morning, and there's a lot that investors aren't happy about. In addition to mixed sales and earnings performance, the company announced a new leadership appointment and fundraising move that indicate it will not sell its international segment.
In the fourth quarter, revenue increased 6.3% year over year to reach roughly 2.56 billion Chinese yuan -- or roughly $360.1 million. While the company's growth rate ticked up, the business still posted a net loss of roughly 3.16 billion yuan -- or roughly $445.7 million. For comparison, the business recorded a net loss of 177.9 million yuan in the prior-year quarter, which works out to roughly $24.9 million based on today's exchange rate.
Source Fool.com
