We recently published a list of Today’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where VNET Group Inc. (NASDAQ:VNET) stands against other worst-performing stocks.
Wall Street’s main indices finished mixed on Wednesday, with the Dow Jones emerging as the sole decliner as investors digested more news of tariff threats from President Donald Trump.
The Dow Jones dropped by 0.20 percent. In contrast, the S&P 500 and Nasdaq clocked in gains of 0.49 percent and 1.22 percent, respectively.
Ten companies mirrored a mostly pessimistic trading—four of which were Chinese stocks—as traders sold off to minimize risks from the potential impact of the US’ trade war with China.
In this article, we have identified the 10 worst performers on Wednesday and detailed the reasons behind their performance.
To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.
A close up image of a application hosting server with the company’s branding on it.
VNET Group Inc. (NASDAQ:VNET)
VNET dropped its share prices by 7.64 percent on Wednesday to end at $11 apiece, in line with the decline in several Chinese stocks, as investors moved to park funds to mitigate the risks of the ongoing trade war, shunning its impressive earnings performance last year.
In its latest earnings release, VNET said it narrowed its fourth-quarter net loss attributable to the company by 99 percent to RMB11.1 million from RMB2.4 billion in the same period a year earlier, as net revenues increased by RMB2.246 billion from RMB1.898 billion.
Meanwhile, it swung to a net income of RMB183 million in full-year 2024 from a RMB2.6 billion net loss a year earlier, as revenues grew by 42 percent to RMB1.832 billion from RMB1.292 billion.
“Moving into 2025, we remain confident in China market’s growth potential. Recent AI breakthroughs are propelling AI development domestically, spurring inference demand, and reducing costs. This is boosting industry-wide enthusiasm for investing in AI, unlocking greater demand for high-performance data centers and reliable IDC services. As a leading player with a clear expansion path for such advanced capacity, we are well-positioned to capture rising market opportunities, driving our sustainable growth,” said VNET CEO Josh Sheng Chen.
Overall, VNET ranks 1st on our list of worst-performing stocks. 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.
