Commentary Around 21Vianet Group Inc's ~20% Selloff
Shares of 21Vianet Group Inc (NASDAQ: VNET) fell over 20 percent in Tuesday's session. Speculation abounds that the selling was due in part to investors making room in their portfolios for the potential Alibaba IPO speculated to launch on September 18, 2014.
Reaching out to analysts for comment, Benzinga recently spoke with a source who stated Eric Chu of 21Vianet indicated the company is awaiting approval for the telco status/cross connect opportunity which may take a couple years - longer than some may have expected. The source warned that this time period may not be baked into the current stock value.
The source stated minimal reason exists for concern over regulatory pressures on Microsoft (NASDAQ: MSFT) as most of the focus may be on "the Windows XP to Windows 8 upgrade and less so on the deployment of Office 365".
The story surrounding 21Vianet hasn't changed, according to the source.
Shares of 21Vianet traded up roughly 4.5 percent in after-hours trading on Tuesday.
Latest Ratings for VNET
|Aug 2016||JP Morgan||Downgrades||Neutral||Underweight|
|Aug 2015||Pacific Crest||Downgrades||Overweight||Sector Weight|
|Nov 2014||Stifel Nicolaus||Downgrades||Buy||Hold|
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