We recently published an article titled Trade Tensions Weigh Heavily on 10 Stocks. In this article, we are going to take a look at where GDS Holdings Limited (NASDAQ:GDS) stands against the other stocks.

The stock market kicked off the trading week in a bloodbath, erasing last week’s gains, with all major indices posting heavy losses following President Donald Trump’s imposition of additional 10-percent tariffs on China, and the resumption of 25-percent taxes on Mexico and Canada.

The tech-heavy Nasdaq posted the biggest losses, down 2.64 percent, followed by the S&P at 1.76 percent and the Dow Jones at 1.48 percent.

According to Trump, there was no room left for Mexico and Canada, and his 25-percent tariff for the two countries “will start.” He also signed an additional 10 percent tariff on goods from China.

The overall sentiment spilled into the performance of 10 companies, which on Monday lost as high as double digits.

To come up with Monday’s top losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A top level executive looking out of a skyscraper window, symbolizing the strategic decisions taken by the company.

GDS Holdings Limited (NASDAQ:GDS)

GDS Holdings Limited (NASDAQ:GDS) fell by 16.32 percent on Monday to close at $31.84 apiece as investors resorted to profit-taking to mitigate risks from the ongoing trade war between the US and China.

As with other Chinese firms, the trade conflict between the two economies helped dampen buying appetite among US investors.

GDS Holdings Limited (NASDAQ:GDS) has already been hit hard, along with other Chinese firms, since Friday following President Donald Trump’s imposition of additional tariffs on Chinese goods.

Despite Monday’s drop, analysts were generally bullish on GDS’ shares, with City analyst Louis Tsang earlier raising its price target to $51.2 from $25.1 previously, while maintaining a “buy” rating. The rating was based on optimism toward growing AI data center-related spending from Chinese cloud service providers.

Overall GDS ranks 1st on our list of Monday's top losers. While we acknowledge the potential of GDS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GDS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.