Why did Chen tank the q4. To show a profit
He essentially told the street that nuomi cash burn will be next to nothing. No share buybacks. Limited capex in q4 and gaming on the rise. Chen knows that Christmas ad revenue is going to be much better than q3.
Looking at Nuomi on Alexa shows a drop off over past few months and I see this trend continuing.
Subtract 6m in Nuomi losses and you get a $9m loss.
Assuming better mobile ad environment around Christmas and Christmas gaming will rise, Chen may be putting nuomi on a tight leash to turn a profit
Sentiment: Strong Buy