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Why 21Vianet Group Dropped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of 21Vianet Group (Nasdaq: VNET  ) have dropped by as much as 17% today before recouping most of those losses after the company reported earnings.

So what: First-quarter revenue came out to $55 million, with adjusted net income of $6 million, or $0.12 per share. Those results were right about on target with what the Street was expecting, with 21Vianet topping expectations by a hair.

Now what: CEO Josh Chen said the company increased capacity utilization to 82% to meet demand in the coming quarters, and the company's plans to expand its data centers remains on track. 21Vianet also provided second quarter guidance (in local currency), expecting revenue to be between 364 million yuan to 370 million yuan. For context, the just-closed quarter's revenue was 345.8 million yuan before converting to dollars.

Interested in more info on 21Vianet Group? Add it to your Watchlist.

Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 17, 2012, at 3:35 PM, djohn1969 wrote:

    Um, what is the point of this article? It claims to explain why the shares pf XYZ dropped, but basically only says 'earnings were in-line with estimates and the share price tanked anyway'... the same thing anybody knows without wasting time browsing to and reading the article.

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Related Tickers

6/19/2013 4:00 PM
VNET $11.80 Down -0.21 -1.75%
21VIANET GROUP INC CAPS Rating: **

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