S&P/ASX 200 Index (ASX: XJO) stock Goodman Group (ASX: GMG) closed on Monday trading for $35.23 a share.
That sees shares in the integrated property group up 25.46% over the past 12 months. And that's not including the 30 cents a share in unfranked dividends Goodman paid out to eligible stockholders over the full year.
For some context, the ASX 200 is up 11.38% over this same period.
With 1.91 billion shares outstanding, at yesterday's closing price Goodman now commands a market cap of $67.35 billion.
Despite that strong 12-month performance, shares in the ASX 200 stock remain down 7.58% from market close on 24 January.
Why is that date important?
Read on.
Goodman share price catches headwinds from China
Goodman's diversified portfolio of real estate assets includes logistics and distribution centres, warehouses, business parks, and data centres.
And it's the company's data centre exposure that has been partly responsible for driving the outperformance of the ASX 200 stock over the past year.
That comes amid the global exuberance over the artificial intelligence (AI) revolution. A revolution that requires next generation data centres to progress.
According to Goodman's website:
As providers of essential infrastructure for the digital economy, Goodman has been developing its data centre capability since 2005. Since then, we have grown to become a large owner of powered sites globally…
Our global power bank of 5.0GW includes completed facilities, secured power and potential data centre projects across 13 major international cities.
So, what does this have to do with 24 January?
Well, on 28 January – the first trading day following the 24th due to the Australia Day public holiday on the 27th – the ASX 200 stock tumbled 8.2%.
The sell-off, which captured numerous data centre operators and AI-related tech stocks, came following news that Chinese open-source AI developer DeepSeek had launched a new generative AI model that required less energy and could demand less data centre space.
Generative AI chip maker Nvidia Corporation (NASDAQ: NVDA) incurred the biggest losses on the news, plummeting 16.9% and wiping US$589 billion from its market cap in a single day.
As for the sell-off in Goodman's shares, Fairmont Equities Michael Gable believes that was overdone (courtesy of The Bull).
ASX 200 stock at an attractive level
"This integrated industrial property group has been expanding into data centres in a bid to take advantage of increasing demand," said Gable, who has a buy recommendation on the ASX 200 stock.
"The shares have fallen from $38.63 on January 22 to trade at $36.10 on February 13," he noted, which is 2.4% above Monday's closing price.
Gable added:
Recent news that Chinese artificial intelligence company DeepSeek could reduce demand for data centres has led to a slump in Goodman's share price.
We believe the retreat in Goodman's shares is an over-reaction and presents buyers with an attractive entry level.
