Pulse of The Market: Tuesday’s 10 Worst Performers

4. VNET Group Inc. (NASDAQ:VNET)

VNET dropped its share prices by 5.67 percent on Tuesday to end at $8.48 apiece, in line with the overall muted sentiment, shunning news of better ratings from Moody’s.

On Monday, VNET earned an upgrade in VNET’s corporate family rating to B2 from B3 previously, and was given a “stable” outlook from “positive.”

Moody’s Senior Analyst Shawn Xiong said that the B2 rating was based on VNET’s strong position in China’s IDC market, its strategically located data centers with significantly expanded wholesale IDC capacity, a steady revenue growth record, diversified customer base, and established partnerships with leading cloud service providers and internet giants.

According to Xiong, VNET is expected to post solid revenues and earnings growth over the next 12 to 18 months, supported by operational synergies from strategic shareholder Shandong Hi-Speed Holdings.

Apart from Moody’s, VNET also earned better ratings from Bank of America, with a revised price target of $17.30, up from $14.50 previously. It also maintained a “buy” rating on the company.

The more optimistic outlook was based on the company’s much higher guidance on capacity delivery targets, now between 400 to 450MW as compared with the 153MW actual delivery in 2024.