NextDC shares plunge 42% after company cuts profit outlook
NextDC slashed its full-year profit forecast. Its electricity distributor suspended work on a new Melbourne data centre.
Australian data centre operator NextDC saw its share price crash 42% on October 21. The company cut its earnings guidance for the year.
The company's electricity distributor is Jemena. Jemena halted connection works for the M3 Melbourne data centre in West Footscray.
The sell-off wiped around $3 billion off NextDC's market value in one trading day. The stock had been a favorite with investors betting on artificial intelligence growth.
Beyond the delay, concerns grew about data centre oversupply. Community backlash has also weighed on the sector.
Most analysts still rate NextDC shares a buy. Some predict the price could triple from current levels.
- 42%
- Share price drop
- 3 billion dollars
- Market value lost
- 19
- Data centres operating
- 2010
- Company founded
Why it mattersThe halt exposes risks in Australia's AI infrastructure bet. Data centre delays could reshape the investment case for the sector.
AustraliaNextDC is a major Australian tech stock; this collapse affects superannuation funds and retail investors exposed to AI infrastructure plays through the ASX 200 index.
✓ Claims checked against the source. checked 4 h ago
