Why Vnet Stock Flew Almost 13% Higher on Friday

Core Insights - Vnet's latest quarterly earnings report has led to a significant increase in its stock price, with American Depositary Shares (ADS) rising nearly 14%, outperforming the S&P 500 index's 1.5% gain [1] Financial Performance - Vnet reported a 22% increase in overall net revenue, reaching 2.43 billion yuan ($339 million) [6] - The company's non-GAAP (adjusted) EBITDA grew almost 28% to approximately 733 million yuan ($102 million) [6] - Revenue growth from the wholesale segment surged by 81% year-over-year, despite not securing major wholesale contracts during the quarter [5] Analyst Recommendations - Jefferies' Edison Lee raised his price target for Vnet's ADS to $25.13 from $24.23, maintaining a buy recommendation [2] - Lee acknowledged that Vnet exceeded broader analyst consensus estimates for both revenue and EBITDA growth in its second quarter [4] - Vnet remains a top pick for Jefferies, indicating strong confidence in the company's future performance [4] Market Trends - The growth of artificial intelligence (AI) is positively impacting data center operators globally, including Vnet, which is well-positioned to capitalize on this trend [6]