Why The Gap, Inc. (GAP) Crashed On Friday

We recently published a list of These 10 Stocks Lost This Much Today. In this article, we are going to take a look at where The Gap, Inc. (NYSE:GAP) stands against other Friday’s worst performers.

Shares of Gap Inc. nosedived by 20.18 percent on Friday to end at $22.31 apiece following expectations of as much as $300 million in incremental tariff-related costs amid the ongoing global trade war.

In a statement, The Gap, Inc. (NYSE:GAP) said that it is expecting between $250 million and $300 million worth of incremental costs if President Donald Trump’s tariff rates of 30 percent on China and 10 percent on other countries remain.

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“The company currently has strategies to mitigate more than half of that amount. After considering these mitigation strategies, the company estimates a remaining net impact of about $100 million to $150 million to fiscal 2025 operating income, primarily weighted to the back half of the year,” it underscored.

Excluding the impact of tariffs, The Gap, Inc. (NYSE:GAP) said it was expecting to post a 1 to 2 percent growth in net sales for the full year 2025, with operating income between 8 and 10 percent. The second quarter, however, is expected to remain flat year-on-year.

Overall, GAP ranks 2nd on our list of Friday’s worst performers. While we acknowledge the potential of GAP, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GAP and that has 10,000x upside potential, check out our report about this cheapest AI stock.

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