NEW YORK (TheStreet) -- Trading volume was high for China-based tech companies on Tuesday as the bears came out in full force. Bitauto Holdings Ltd (BITA), 21Vianet Group (VNET) and Nam Tai Electronics (NTE) bombed as investors flocked to exit the stocks.
21Vianet Group led the losses after the Chinese internet provider reported less-than-expected third-quarter revenue. Net income of 8 cents was on par with consensus, while revenue of $83.99 million was $30 million less than analysts surveyed by Thomson Reuters had hoped for. Management anticipates fourth-quarter revenue between $88 million and $90 million, compared to analyst expectations of $93.55 million.
Weak revenue and poor guidance rattled investors; shares fell 8.8% to $16.78 during Tuesday trading. By close, 3.2 million shares had changed hands, well over the three-month average daily trading volume of 677,787.
Fellow Chinese internet provider Bitauto Holdings followed suit, tumbling 6.5% to $32.31, with trading volume of 1.74 million shares exceeding its average daily volume of 1.31 million.
Electronics manufacturer Nam Tai shed 8.4% to $7.27, and trading volume was roughly double its average with 1.09 million shares in circulation Tuesday.
TheStreet Ratings team rates 21Vianet Group Inc as a Hold with a ratings score of C. The team has this to say about their recommendation:
"We rate 21Vianet Group Inc (VNET) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity."
- You can view the full analysis from the report here: VNET Ratings Report