Why VNET Group Stock Crashed and Burned Today
VNET Group (NASDAQ: VNET) reported third-quarter results after the closing bell on Thursday, Nov. 18. The reported numbers were mildly disappointing and investors ran for the exits when management comments implied that future results may be limited by heavy-handed regulation and sprawling competition. VNET shares were trading 16.2% lower at 1:15 p.m. ET.
The China-based provider of value-added data networking services such as content delivery networks, last-mile broadband connections, and website hosting platforms saw third-quarter sales rise 25% year over year to $242 million. The revenue gain was a more generous 32% in light of currency exchange trends over the last year as the Chinese Yuan has strengthened in value against the U.S. dollar.
On the bottom line, adjusted earnings fell from a net profit of $0.07 to a net loss of $0.03 per diluted American depositary share (ADS).
Source Fool.com