Why Shares of 21Vianet Group Surged Today
Shares of 21Vianet Group (NASDAQ: VNET) jumped on Monday on two pieces of news. The Chinese data center services provider announced a new project with Alibaba, and it announced an agreement to issue new shares to a company wholly owned by executive chairman Sheng Chen. The stock was up 16.1% at 11:45 a.m. EDT.
21Vianet has signed a memorandum of understanding with Alibaba to deploy internet data center services in a project in eastern China. The project will be split into two phases, with the first expected to be completed by the first half of 2020. 21Vianet expects to generate revenue of RMB1.6 billion, or about $226 million at current exchange rates, from the first phase of the project.
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Source Fool.com
