NEXTDC LTD (NXT.AU) saw its stock price plummet by 6.15% in Friday's trading session, as market experts express concerns about the company's ability to deliver returns on its significant investments. The sharp decline comes amid growing skepticism about the data center operator's performance despite operating in a booming sector.

Marcus Burns, an investment expert from Spheria, highlighted NEXTDC as a stock that's down and expected to stay down in the near future. Despite the company's association with the popular AI and data centre thematic, Burns pointed out several key issues plaguing NEXTDC's performance. "The company has put nearly $1 billion to work in the past year with very little revenue growth to show for it," Burns stated, adding that "returns on capital are low, and despite the strong thematic, the business itself isn't delivering."

This bearish outlook appears to have resonated with investors, triggering the significant sell-off. The stark contrast between NEXTDC's substantial investments and its lackluster revenue growth is raising red flags about the company's ability to capitalize on the growing demand for data center services. As the market reassesses NEXTDC's prospects, the stock may face continued pressure until the company can demonstrate improved financial performance and more efficient capital allocation.