FB just released their first 10Q since going public and it's no surprise the stock is down in afterhours given terrible market conditions. RENN has been moved from 4 to 6 on 1. FB IPO issues tying up Institutional Funds and FB stock falling ..and 2. Zynga's gaming slump
Now that RENN is going into earnings at less than $1 plus cash, we can anticipate a few things going into the call: 1. BIDU's strong ad revenue means that internet spending in China is still very appealing to businesses who want access to the social media masses....RENN should continue to show record improvements here. 2. Gaming revenue of Zynga tied to older games and RENN has been releasing new games over the past quarter. RENN is also hinting that IPO of gaming will take place unless a different arrangement is made...and they are, in fact, separating the entire business out of RenRen headquarters either way. (GAMING is thus a negotiable entity) 3. RenRen should be inching towards 200m users soon enough. Don't forget that most of the new internet users in China (100+m over the past year alone) are entering this arena via smartphone. We may just be in store for massive inching soon enough. 4. While FB has no concept of mobile revenue....the real reason they are dragging afterhours....RENN is leading the way with their So/Lo/Mo platform and vertical/horizontal integration of their other websites. 5. 56.com has been making REAL progress and while bandwidth infrastructure costs remain...they are clearly a youtube player in Asia. 6. Nuomi has moved from 1200th in the world to 900th over the past 2 months....we should see improvements there as well.
Now with the stock tanking going into earnings...?
thanks for the opine just need some of the good to be translated to stock price altho buying down here seem like a good bet. Wonder what chen will say at the stockholder meeting with a sub 4 dollar stock that seem to see no bottom.
Thanks for the analysis. RENN will suffer because of FB but I believe it will offer to grab RENN at very low price. The Renren model is different that FB and I hope RENN can come our with much better report and provide a better picture of where RENN is going. If RENN can somehow differentiate itself from FB then it may reverse the downturn and double in a couple of month. I believe RENN will be at least above 6 by year end.