We recently published an article titled Trade Tensions Weigh Heavily on 10 Stocks. In this article, we are going to take a look at where VNET Group, Inc. (NASDAQ:VNET) stands against the other stocks.
The stock market kicked off the trading week in a bloodbath, erasing last week’s gains, with all major indices posting heavy losses following President Donald Trump’s imposition of additional 10-percent tariffs on China, and the resumption of 25-percent taxes on Mexico and Canada.
The tech-heavy Nasdaq posted the biggest losses, down 2.64 percent, followed by the S&P at 1.76 percent and the Dow Jones at 1.48 percent.
According to Trump, there was no room left for Mexico and Canada, and his 25-percent tariff for the two countries “will start.” He also signed an additional 10 percent tariff on goods from China.
The overall sentiment spilled into the performance of 10 companies, which on Monday lost as high as double digits.
To come up with Monday’s top losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A close up image of a application hosting server with the company’s branding on it.
VNET Group, Inc. (NASDAQ:VNET)
VNET Group, Inc. (NASDAQ:VNET) dropped its share prices by 15.09 percent on Monday to close at $9.96 apiece as traders turned sellers amid the ongoing trade tensions globally.
With VNET’s operations largely based in China, the ongoing trade conflicts globally would dampen investor appetite for Chinese stocks among global investors, particularly US-based shareholders.
VNET Group, Inc. (NASDAQ:VNET), one of the leading carriers and cloud-neutral internet data center service providers in China, has been benefiting from China’s artificial intelligence industry over the past few months on expectations that any advancement would bolster its business growth.
Since DeepSeek’s emergence, various Chinese firms, including the biggest ones listed on the US exchange, have kicked off their efforts to integrate DeepSeek into their operations.
Last year, the company also signaled plans to invest heavily in AI, even earmarking a higher capital for this year to support growth.
Overall VNET ranks 2nd on our list of Monday’s top losers. While we acknowledge the potential of VNET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VNET but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
