Updated from 10:24 AM EDT.
NEW YORK (TheStreet) -- Shares of 21Vianet (VNET) were dropping 12.27% to $9.22 on heavy trading volume late Wednesday afternoon after the Beijing-based company reported a larger-than-expected loss for the 2016 second quarter.
After yesterday's closing bell, the Internet data center services provider posted an adjusted loss of 17 cents per share. Analysts were modeling a loss of 9 cents per share.
Revenue was $137.1 million for the period, higher than analysts' estimates of of $128.2 million.
"Despite headwinds in certain market segments, we are pleased to report that core business areas, including IDC, Cloud and VPN gained solid growth momentum in the second quarter," CEO Steve Zhang said in a statement.
Additionally, JPMorgan downgraded the stock to "underweight" from "neutral" following the results. The firm also slashed its price target on shares to $5.60 from $21, the Fly reports.
About 5.63 million of the company's shares were traded so far today vs. its average volume of 1.1 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: VNET