Wed, Apr. 8, 10:58 AM
- Following a big overnight rally in Hong Kong (followed a 3-day holiday during which Shanghai rallied), beaten-down Chinese Internet and mobile stocks have soared in U.S. trading.
- The biggest gainers include many names that are far below their 2014 highs: The group includes Qihoo (QIHU +10.5%), YY (YY +14.9%), Taomee (TAOM +14.3%), Sina (SINA +8.7%), and Weibo (WB +12.1%). Mobile game publishers Sky-mobi (MOBI +12.6%), China Mobile Games (CMGE +8%), and iDreamSky (DSKY +13.4%) are also sharply higher, as are online real estate plays SouFun (SFUN +13.1%), E-House (EJ +6.1%), and Leju (LEJU +9.8%).
- Giants Alibaba (BABA +3.4%) and Baidu (BIDU +4.1%) aren't being left out. Neither are Youku (YOKU +7.5%), 21Vianet (VNET +7.4%), Momo (MOMO +6.8%), Sohu (SOHU +7.7%), Changyou (CYOU +4.5%), Dangdang (DANG +7.3%), Vipshop (VIPS +4.8%), JD.com (JD +3.9%), Jumei (JMEI +6.6%), Sungy Mobile (GOMO +5.8%), China Techfaith (CNTF +7.1%), and KongZhong (KZ +5.5%).
- Alibaba has proposed an asset injection into its money-losing Alibaba Pictures (+36% in Hong Kong) film arm. Sky-mobi has seen Rosenblatt (Buy) hike its target to $11, while noting many Chinese mobile game developers have been bought out; it thinks Sky-mobi's investments in developers could be worth $140M. NetEase has been upgraded by CICC Research.
- Over in Hong Kong, software/cloud services provider Kingsoft (OTCPK:KSFTF) rose 24.2% to HKD$29.50. Messaging/gaming giant Tencent (OTCPK:TCEHY) rose 3.3% to HKD$154.80.
- ETFs: KWEB, CQQQ, QQQC
Fri, Mar. 20, 3:02 PM
- With the Nasdaq up 0.9% (and nearing its March 2000 highs) amid a market rally, major tech gainers are easily outnumbering major decliners.
- Following a 1.4% overnight rally in Shanghai, strong Q1 guidance from Ctrip, and a report that Sohu/Tencent's Sogou search engine is planning an IPO, a slew of Chinese tech names are posting big gains. Aside from Ctrip and Sohu, notable gainers include search/browser/security app provider Qihoo (QIHU +4.9%), sports lottery site 500.com (WBAI +12.5%), auto sites Bitauto (BITA +4.2%) and Autohome (ATHM +4.9%), online retailer Vipshop (VIPS +4.7%), data center owner 21Vianet (VNET +6.7%), polysilicon maker Daqo (DQ +6.5%), and chat/dating app owner Momo (MOMO +4.6%).
- Other standouts include optical component vendor Oclaro (OCLR +9.6%), U.S. solar installer Solar3D (SLTD +10%), NFC reader maker On Track (OTIV +10.5%), printer maker Lexmark (LXK +3.7%), and big data/analytics software provider Hortonworks (HDP +10.2%).
- Notable decliners include VoIP hardware/software provider Sonus (SONS -6.1%), solar microinverter leader Enphase (ENPH -4.2%), and authentication hardware/software provider Vasco (VDSI -5.7%).
- Qihoo is adding to Wednesday's gains, while 500.com and 21Vianet are erasing recent losses. On Track is now up 21% over the last two days. Solar3D is adding to the gains seen yesterday following a contract announcement. Vasco had rallied strongly this week before today.
- Previously covered: Ambarella, Spherix, Envivio, Youku, Viggle, Castlight/Benefitfocus, Care.com, Ultra Clean, InterCloud, Perceptron, Violin Memory, Amtech
Thu, Mar. 19, 3:24 PM
- Today's notable tech gainers include NFC reader vendor On Track (OTIV +10.6%), Chinese real estate site owner Leju (LEJU +12.9%), mobile accessory vendor Zagg (ZAGG +5.4%), online furniture giant Wayfair (W +6.3%), and LED/chip/storage equipment maker Veeco (VECO +4.6%). The Nasdaq is up 0.2%.
- Notable decliners include mobile IP licensing firm Unwired Planet (UPIP -11.8%), flash storage array vendor Violin Memory (VMEM -7.1%), Chinese CDN owner ChinaCache (CCIH -6%), Chinese data center owner 21Vianet (VNET -4%), telecom equipment vendor Adtran (ADTN -4.6%), and VoIP/unified communications hardware vendor ShoreTel (SHOR -4.9%).
- On Track might be benefiting from Apple Pay enthusiasm. Leju is more than making up the 7% drop it saw yesterday after posting mixed Q4 results, guiding for 21%-25% 2015 growth, and declaring a special dividend. Veeco, which has had accounting issues in the past, disclosed today it had replaced Ernst & Young as its auditor with KPMG.
- Wayfair is now up 31% since its big March 4 Q4 beat. Zagg is up 46% since its iPhone 6-driven Feb. 24 Q4 beat.
- ChinaCache announced this morning its Q4 report will arrive on March 26. 21Vianet has gradually moved lower since posting mixed Q4 results last week. Violin is reversing the big gains seen last week following multiple insider buys.
- Previously covered: Yelp, Envivio, Novatel, Digital Turbine, Sungy Mobile, SuperCom, healthcare tech, Solar3D, China Mobile, Red Hat
Mon, Mar. 9, 6:16 PM
- 21Vianet's (NASDAQ:VNET) adjusted operating expenses rose 130% Y/Y in Q4 to $37.8M and made up 27.5% of revenue, up from 25.5% in Q3 and 18.7% a year ago. That, in turn, led EPS to miss estimates in spite of a revenue beat.
- On a non-adjusted basis, sales/marketing spend rose 107% to $16.1M, R&D rose 89.6% to $6.4M, and G&A rose 192.5% to $25.7M. Adjusted gross margin was 34%, even with Q3 and up from 29% a year earlier.
- Top-line numbers remained strong: Hosting and related service revenue rose 63.8% Y/Y to $96.1M thanks to data center cabinet, CDN, and cloud service growth; managed network service revenue rose 41.6% to $41.5M.
- Cabinet count rose 53% to 21,522, with 3,378 added in Q4 alone. A recent deal with investor/major cloud services provider Kingsoft will result in at least 5K cabinets being leased over the next 3 years.
- Revenue guidance is in-line: Q1 revenue of RMB883M-RMB924M (+54% Y/Y at the midpoint) vs. an RMB912.4M consensus, and full-year revenue of RMB3.91B-RMB4.11B (+45% at the midpoint) vs. a consensus of RMB3.98B.
- Shares have fallen to $16.52 AH. The 52-week low is $14.23.
- Q4 results, PR
Mon, Mar. 9, 5:40 PM
Fri, Mar. 6, 2:54 PM
- With the Nasdaq down 1.1%, major tech decliners are outpacing major gainers by a sound margin.
- Notable gainers include gaming headset maker Turtle Beach (HEAR +6.8%), Chinese data center owner 21Vianet (VNET +3.6%), wireless charging tech developer Energous (WATT +2.7%), Chinese online retailer LightInTheBox (LITB +5.6%), and solar microinverter maker Enphase (ENPH +5.9%).
- Notable decliners include ultracapacitor maker Maxwell (MXWL -6.6%), healthcare IT giant Cerner (CERN -3.8%), enterprise storage hardware vendor Quantum (QTM -6%), cloud SMB marketing software vendor Constant Contact (CTCT -4.6%), 3D measurement/imaging system maker FARO Technologies (FARO -5.4%), PC/mobile peripherals giant Logitech (LOGI -4.6%), and cloud security/compliance software vendor Qualys (QLYS -4.2%).
- Energous is up 12% over the last two trading days; its Q4 report arrives on Monday afternoon. Maxwell was up sharply yesterday on an insider buy. Cerner closed yesterday near an all-time high of $73.24.
- Previously covered: YY, Finisar/JDS Uniphase, Violin Memory, Crossroads, Skullcandy, Neustar, Synacor, CyberArk, Autohome/Bitauto, Wave Systems
Tue, Mar. 3, 3:07 PM
- With the Nasdaq down 0.6%, the number of tech companies posting outsized declines easily surpasses the number posting significant gains.
- Chinese firms are well-represented on the ranks of notable decliners. In addition to Alibaba, the list includes CDN owner ChinaCache (CCIH -4.6%), mobile app developer Cheetah Mobile (CMCM -9.8%), solar module vendor Yingli (YGE -4%), polysilicon provider Daqo (DQ -5.1%), real estate sites SouFun (SFUN -4.5%) and Leju (LEJU -4.3%), and data center owner 21Vianet (VNET -2.9%).
- Other decliners include chip equipment giant Applied Materials (AMAT -4.2%), seismic tech provider Geospace (GEOS -4.9%), VoIP infrastructure hardware/software firm Sonus (SONS -4.7%), IT services firm WidePoint (WYY -3.7%), auto site TrueCar (TRUE -7.4%), and online grocery coupon provider Coupons.com (COUP -5.2%).
- SouFun fell hard yesterday following news 58.com is buying real estate site Anjuke. Many Chinese tech firms sold off last Friday as the yuan made 3-year lows against the dollar.
- Previously covered: Seagate/Western Digital, Micron, Overstock
- Notable gainers: Veeva, Gogo, Vringo, Finjan, Aviat
Dec. 8, 2014, 2:51 PM
- Though Shanghai was up 2.8% overnight following positive trade surplus data, Chinese Internet stocks are off sharply in U.S. trading amid a broader equity selloff. The Nasdaq is down 0.9%.
- Major decliners: WUBA -11.9%. QIHU -6.9%. MOBI -6.8%. YY -5.9%. WBAI -7.7%. CCIH -9.3%. VNET -8.9%. JMEI -8.9%. ATHM -8.5%. DANG -6.5%. SOHU -4.6%. SFUN -4.3%. EJ -4.4%. CMCM -6.9%. CMGE -8.3%.
- Valuations for the group are generally much lower today than they were in spring.
Dec. 1, 2014, 12:32 PM
- Chinese software/cloud services provider Kingsoft (OTCPK:KSFTF), fast-growing smartphone OEM Xiaomi, and Singaporean sovereign wealth fund Temasek are collectively investing $296M in 21Vianet (VNET +4.9%) at a price of $18/share (4% below Friday's close).
- Kingsoft is buying $172M worth of shares, Xiaomi $50M, and Temasek $94M. Kingsoft will also sign an MOU with 21Vianet under which "21Vianet will build, operate, maintain and provide technical support for new, state-of-art data centers in China to meet Kingsoft and its designated third party's next-generation cloud infrastructure requirements."
- 21Vianet is rallying on the news, recouping some of last week's post-earnings losses. Many Chinese Internet peers are off sharply.
Dec. 1, 2014, 9:13 AM
Nov. 26, 2014, 10:25 AM
- Stifel and Canaccord have both downgraded 21Vianet (VNET -7.3%) to Neutral post-earnings. Canaccord's target has been slashed by $16 to $19. Shares remain off sharply, but have pared yesterday's AH losses.
- Canaccord thinks 21Vianet's Q4 guidance "implies the dramatic acceleration in hosting revenue [the firm] initially forecasted will not materialize." Stifel sees investor confidence that was already hurt by fraud allegations eroding further.
- CDN rival ChinaCache (CCIH -1.3%) is off moderately.
Nov. 26, 2014, 9:17 AM
Nov. 25, 2014, 5:42 PM
Nov. 25, 2014, 5:00 PM
- Though it beat Q3 estimates, 21Vianet (NASDAQ:VNET) is guiding for Q4 revenue of RMB812M-RMB848M ($132.2M-$138.1M), +61% Y/Y at the midpoint but well below an RMB901.1M ($146.8M) consensus.
- Q4 adjusted EBITDA is expected to be in a range of RMB152M-RMB168M, and full-year adjusted EBITDA guidance has been cut to RMB551M-RMB567M from RMB600M-RMB630M.
- The guidance is attributed to the transition to VAT collection and revised expectations for 21Vianet's cloud and managed network services (MNS) businesses. SA author Trinity Research has asserted MNS runs ghost offices, and that its subsidiaries are operating illegally.
- Q3 hosting/related service revenue +52% Y/Y to $83.6M. MNS revenue +50.4% to $43.2M. Opex rose 21.1% to $23.3M.
- Q3 results, PR
Oct. 8, 2014, 5:38 PM
Sep. 18, 2014, 12:32 PM
- A Chinese media report states 21Vianet's (VNET -3.9%) $175M debt financing deal has been temporarily suspended due to allegations recently levied by SA author Trinity Research. (h/t GEOInvesting).
- Yesterday, Trinity asserted 21Vianet's co-founders directly and indirectly control 16 related parties that haven't been disclosed to the SEC. It also pointed out much of the Chinese data center owner's management team is linked to the related parties.
- For its part, 21Vianet dismisses Trinity's allegations as "baseless," and claims it's fully meeting SEC disclosure requirements.
VNET vs. ETF Alternatives
21Vianet Group Inc is a carrier-neutral internet data center service provider. It provides hosting and related services, managed network services and cloud computing infrastructure services, improving the reliability, security and speed.
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