#4 - GDS Holdings (NASDAQ:GDS)
The data center market is as hot in China as it is in the United States. However, it’s still evolving. So even with the market expected to be valued at over $69 billion this year, further strong growth is likely. That’s the core thesis for owning GDS Holdings Ltd. (NASDAQ: GDS) as part of the Chinese stock revival.
The company’s business model focuses on “colocation” services. This means it places its servers and other hardware in rented spaces. It’s more cost-effective than housing the equipment on its own premises where it would pay for the real estate and electricity. The overhanging issue for the company is profitability.
GDS stock is up 28% in the past month. That’s below other Chinese stocks. However, those gains are adding on to already strong growth. This has many analysts concerned that the stock could be due for a correction. The consensus price target is $15.29 which would be a 31% drop from the price on October 7, 2024.
About GDS
GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services.
Read More - Current Price
- $20.53
- Consensus Rating
- Buy
- Ratings Breakdown
- 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $15.29 (25.5% Downside)
