VNET Group Stock Falls 9% On Widened Q1 Net Loss

(RTTNews) - VNET Group, Inc. (VNET) shares dropped 8.45 percent to $5.39 on Wednesday, down $0.51, after the company reported mixed financial results for the first quarter of 2025. While total net revenues rose 18.3 percent year-over-year to RMB2.25 billion, the company's net loss widened to RMB237.6 million from RMB187.0 million a year ago, largely due to changes in the fair value of financial instruments. The stock opened at $5.59 and traded between $5.37 and $5.91 on the Nasdaq. It previously closed at $6.04. Volume reached 5.3 million shares, below the average volume of 9 million. VNET's 52-week trading range is between $1.71 and $16.13.

The revenue growth was primarily driven by the continued expansion of VNET's wholesale internet data center business, but the larger-than-expected loss appears to have weighed on investor sentiment.