August 17, 2012
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 (Nasdaq: VNET ) tanked by as much as 11% today after the company reported second-quarter earnings results below expectations.
So what: The company, which is the largest carrier-neutral Internet data center services provider in China, posted revenue of $57.4 million, a gain of 58.2% from a year ago. That translated into a net profit of $2.9 million, compared to a net loss in the same quarter last year.
Now what: That bottom line was only about half of what analysts were looking for, though. Additionally, 21Vianet's revenue was also on the low end of its guidance for the quarter. CEO Josh Chen said the company achieved a new milestone with the opening of its new self-built data centers, although these did not come online until the end of June. 21Vianet met its revenue guidance, but just barely.
Interested in more info on 21Vianet? Add it to your watchlist by clicking here.
More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013
." I invite you to take a copy, free for a limited time. Just click here
to access the report and find out the name of this under-the-radar company.