Data centre disasters: Why you should think twice before buying Maas Group and NextDC shares

Can these fallen ASX shares bounce back and double from here, or will they keep deteriorating?

It's been a rocky month for the Australian data centre sector. 

Over the past couple of weeks, two ASX-listed stocks have grabbed investors' attention. 

In a matter of weeks, Maas Group Ltd (ASX: MGH) went from being a relatively unknown small-cap industrials stock to dominating financial news headlines. As a major investor in Firmus Technologies, Maas' share price rode the wave surrounding Firmus' proposed IPO before spectacularly crashing when it failed to list. 

Shortly after, it was NextDC Ltd (ASX: NXT)'s turn to command the spotlight. Unlike Maas Group, NextDC was already a widely recognisable stock. It had long been seen as one of the few ways to gain exposure to artificial intelligence on the ASX, and is consistently assigned a buy rating from many experts. 

In fact, up until last week, every analyst covering the company had a buy rating on NextDC shares, with an average price target of $20.54.

However, that narrative came crashing down to earth when the ASX-listed data centre operator released an earnings downgrade late last week, sending its share price down 42% in a single session.

Two woman holding a tablet and clipboard examine a server rack in a data centre.

Image source: Getty Images

Buying the dip: Ingrained behaviour

Buying the dip has become firmly ingrained behaviour among Australian retail investors. 

For S&P/ASX 200 Index (ASX: XJO) investors, this strategy has generally worked out very well in recent times. 

Since 2009, the index has been on an upward trajectory. 

The ASX's steep decline during COVID gave many retail investors the opportunity to buy cheap shares for the first time and make a significant profit. 

According to ASIC, approximately one in five Australian investors began their market journey during the pandemic era. With the ASX rallying strongly in 2021, their first experience buying the dip on ASX shares was generally very positive. 

This behaviour has continued in more recent downturns. When the ASX fell in March 2026, a record number of Australian investors added to their portfolios, according to the Australian Financial Review.

However, while the ASX 200 has endured upward momentum over the past 15 years, this has not applied to all individual shares.

Rather, certain individual stocks have not been so fortunate.

For example, after peaking at more than $160 in 2021, Domino's Pizza Enterprises (ASX: DMP) remains down more than 80%. Similarly, Magellan Financial Group (ASX: MFG) and Flight Centre Travel Group Ltd (ASX: FLT) remain down more than 80% from their peaks.

Safe to say, buying the dip does not always work out. 

So, what about Maas Group and NextDC? Will they bounce back and double your money, or keep deteriorating?

Here's a few things to consider before you jump in and buy shares.

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises and Goldman Sachs Group. The Motley Fool Australia has recommended Domino's Pizza Enterprises and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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