Shares of GDS Holdings Ltd (NASDAQ: GDS), a leading data center operator in China, plummeted by 18.05% in intraday trading on Tuesday, following the release of the company's third-quarter 2024 financial results and updates on its international expansion plans.

In its earnings report, GDS Holdings reported revenue of RMB 2.97 billion ($422.6 million) for the third quarter, surpassing analyst expectations. The company also reaffirmed its full-year 2024 revenue guidance of RMB 11.34 billion to RMB 11.76 billion ($1.58 billion to $1.64 billion). However, earnings per share of RMB -1.12 ($-0.16) missed estimates by a slight margin.

While the company's financial performance was relatively positive, investors appeared to be concerned about GDS Holdings' plans for accelerated international expansion. The company announced that its international affiliate, DigitalLand Holdings Limited (GDS International), had entered into definitive agreements for institutional private equity investors to subscribe for $1.0 billion of Series B convertible preferred shares. As a result, GDS Holdings' ownership stake in GDS International is expected to be diluted to approximately 37.6% on an as-converted basis.