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The former (it is a fey after all). It likes to find planets that are technologically advanced enough to detect it coming so they can get really worked up about it, but without advanced enough space travel tech to do anything about it. Like, Earth would be a primo target for a gwahled.
For a light snack it can also swallow a starship whole and feast on the terror of the trapped crew.
Yeah, this was one of the more odd-ball but awesome entries in the book, for sure. I hope you won't be too upset to hear that I immediately decided that if I run one, it will hurtle towards the target planet shouting "Show me what you got!"