Renren: An Indirect Play In Online Lending
Renren Will Never Be China's Facebook
Pamela de Butler
Pamela de Butler
You Won't Get Renren That Cheap Again
Mon, Jul. 11, 3:00 PM
Wed, Jun. 8, 6:04 AM
Tue, May 31, 3:00 PM
Mon, May 16, 12:51 PM
Mon, May 16, 6:10 AM
Wed, Jan. 20, 1:18 PM
- Like clockwork, high-beta tech stocks continue selling off at a feverish pace as markets nosedive. Today's selloff comes with the Nasdaq down 2.7%, and the S&P 3%. Margin calls are likely a contributing factor.
- Solar stocks, which sold off yesterday even as major indices moved little, are underperforming again as energy stocks get routed once more and oil drops below $27/barrel. Hard-luck SunEdison (SUNE -13.6%) is now close to $2. Also tumbling: Canadian Solar (CSIQ -8.8%), ReneSola (SOL -8.2%), and Yingli (YGE -6.9%).
- Security tech plays FireEye (FEYE -9.3%), Palo Alto Networks (PANW -6.1%), Rapid7 (RPD -11.6%), and Vasco (VDSI -10.5%) aren't faring better - peers Fortinet and Barrcauda were downgraded this morning. Nor are Splunk (SPLK -7.7%) and Tableau (DATA -7.2%), two firms often hyped as big data/analytics plays, or Russian tech firms Yandex (YNDX -6.6%) and Qiwi (QIWI -6.9%), which often sell off when oil prices and the ruble are under pressure.
- Elsewhere in tech, big decliners include Zillow (Z -7.1%), Square (SQ -6.7%), Fitbit (FIT -6.6%), Groupon (GRPN -6.9%), TrueCar (TRUE -7.7%), Pure Storage (PSTG -7.8%), Jive Software (JIVE -7.4%), Shopify (SHOP -7.2%), Ruckus Wireless (RKUS -8%), Renren (RENN -6.8%), Infinera (INFN -6.1%), TripAdvisor (TRIP -6.5%), Ellie Mae (ELLI -6.7%), and Knowles (KN -6.2%).
- Also off sharply: Several large-cap tech stocks, TowerJazz, Synaptics, Adtran
Dec. 31, 2015, 9:31 AM
- Matthew Nimetz, an advisory director at investment firm General Atlantic, has left Renren's (NYSE:RENN) board. So has Katsumasa Niki, a corporate strategy/development exec at SoftBank.
- Renren is "in the process of evaluating candidates for a new independent director of the company." Its board bio page currently shows just five directors, including founder/CEO Joseph Chen (chairman) and COO Jian Liu.
Nov. 27, 2015, 5:41 AM
- Renren (NYSE:RENN): Q3 EPS of -$0.08
- Revenue of $12.42M (-36.4% Y/Y)
Sep. 30, 2015, 9:19 AM
Sep. 17, 2015, 7:05 PM
- Renren (NYSE:RENN) has led a $15.5M funding round for Aspiration, a startup that delivers a curated set of mutual funds and other financial products, with the goal of taking traditional advisors and other middlemen out of the picture. GSV Capital (NASDAQ:GSVC) and a slew of other investors have also taken part in the round.
- Aspiration claims to have seen a doubling of customers every 6 weeks (on average) over the last 6 months; millennials make up a large chunk of the base. Notably, customers only pay what they choose to. However, over 90% of investors in the Aspiration Flagship Fund (MUTF:ASPFX) are said to have paid the company.
- Renren has stakes in a slew of fintech/online lending firms, including top LendingClub rival SoFi. The company, which currently has a $974M market cap, has estimated its long-term investments were worth $611.5M as of June 30; $257M in cash/short-term investments were also on the balance sheet.
- Renren rose 8.4% in regular trading to $3.09. GSV fell 0.8% to $8.48, 46% below a Q2-ending NAV of $15.72/share.
Aug. 20, 2015, 7:08 AM
- Renren (NYSE:RENN): Q2 Adj. Net Loss of $71.9M.
- Revenue of $15.1M (-34.1% Y/Y)
Jul. 31, 2015, 7:36 AM
Jul. 9, 2015, 11:25 AM
- With local regulators continuing to scramble to halt plunging equity prices - among other things, investors with 5%+ stakes have been barred from selling shares for 6 months - Chinese markets reversed course last night. Shanghai rose 5.8%, Shenzhen rose 3.8%, and Hong Kong rose 4.5%. The Nasdaq is currently up 1.2%.
- Not surprisingly, U.S.-traded Chinese tech firms are flying higher. Big gainers include Sina (SINA +13.6%), Sohu (SOHU +11.1%), JD.com (JD +8.1%), Vipshop (VIPS +8.3%), Qunar (QUNR +9%), ChinaCache (CCIH +14.1%), Renren (RENN +9.5%), Wowo (WOWO +11.9%), Leju (LEJU +9.1%), China Mobile Games (CMGE +8.3%), Xunlei (XNET +9.7%), Sky-mobi (MOBI +9%), and eLong (LONG +18.1%).
- Also up strongly (previously covered): Qihoo, 21Vianet, E-House, Youku, Baozun, NQ Mobile, Weibo, Cheetah Mobile, Jumei, and Momo. In addition, YY and Dangdang are rallying after becoming the latest Chinese companies to receive going-private offers.
- The Guggenheim China Tech ETF (NYSEARCA:CQQQ) is now up 19% from a Wednesday low of $30.09; it's still down 22% from a May peak of $45.74.
- ETFs: KWEB, QQQC, EMQQ
- Two days ago: Chinese tech stocks crater; many names down over 10%
Jul. 7, 2015, 10:42 AM
- The selloff in Chinese equities refuses to let up: Shanghai fell 1.3% overnight, Shenzhen fell 5.3%, and Hong Kong fell 2.7%. The declines come amid a backdrop of frantic government efforts to halt the plunge, and requests by hundreds of Chinese companies for trading halts.
- The lion's share of U.S.-traded Chinese Web and mobile firms are down at least 5%, and many are down more than twice that. In alphabetical order by ticker, major decliners include Autohome (ATHM -10.6%), Bitauto (BITA -18.7%), Baozun (BZUN -22.7%), ChinaCache (CCIH -14.6%), Cheetah Mobile (CMCM -15.2%), China Mobile Games (CMGE -13.2%), Ctrip (CTRP -10.1%), Changyou (CYOU -12.6%), Dangdang (DANG -13.8%), iDreamSky (DSKY -15.4%), E-House (EJ -15.9%), Jumei (JMEI -20.2%), Leju (LEJU -12.1%), eLong (LONG -12.6%), Momo (MOMO -9.4%), NQ Mobile (NQ -16.7%), NetEase (NTES -12.2%), Qihoo (QIHU -10.3%), Qunar (QUNR -14.2%), Renren (RENN -17.8%), SouFun (SFUN -16.3%), Sohu (SOHU -10.9%), Taomee (TAOM -15.1%), Vipshop (VIPS -9.7%), Weibo (WB -10.9%), 500.com (WBAI -26.2%), Wowo (WOWO -26.7%), 58.com (WUBA -17.3%), Xunlei (XNET -14%), Youku (YOKU -12.2%), and YY (YY -9.4%).
- The plunge seen over the last two months (aided by panic selling and margin calls?) has led multiples for U.S.-traded Chinese tech names to compress dramatically, with forward P/E and P/S ratios often below those of U.S. peers sporting similar growth profiles. The Guggenheim China Tech ETF (CQQQ -9.3%) is down 29% from a May peak of $45.64.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese tech stocks tumble again in spite of fresh government support
- Earlier today: Chinese phone firms decline as country's markets sink
- Update: The group pared its losses a bit in afternoon trading. CQQQ closed down 5.8%.
Jun. 10, 2015, 12:48 PM
- Continuing a widespread trend of going-private offers for U.S.-traded Chinese tech firms, Renren (NYSE:RENN) chairman/CEO Joseph Chen and COO James Liu have offered to buy the company for $4.20/share in cash - a modest $0.09/share premium to Tuesday's close.
- Chen and Liu currently own 32% of Renren's shares, and control 49% of its voting power. They intend to finance the purchase with "a combination of debt and equity capital, and rollover equity in the Company." As is the norm, Renren's board plans to form a committee to weigh the proposal.
- The Street isn't impressed with the offer price. Renren, buoyed by a major Chinese Internet stock run-up and enthusiasm about the company's online lending investment portfolio, was up 64% YTD going into today.
May 22, 2015, 12:09 PM
- The Shanghai exchange rose 2.8% overnight to a 7-year high, and has once more taken U.S.-traded Chinese Internet/mobile names higher with it.
- Major gainers include Renren (RENN +10.4%), Youku (YOKU +14.1%), SouFun (SFUN +10.8%), Weibo (WB +4.4%), Dangdang (DANG +7.9%), Momo (MOMO +9.7%), and iDreamSky (DSKY +4.9%). Ctrip and eLong are also up sharply, following news an investor group featuring Ctrip bought a 62.4% stake in eLong from Expedia.
- Renren, whose stable of online P2P lending investments has been drawing attention, is now up 31% since its May 12 Q1 report. Youku is up 33% since providing strong Q2 guidance to go with mixed Q1 results on Wednesday evening. Momo is up 44% since delivering market-pleasing Q1 results on Monday afternoon.
- ETFs: KWEB, CQQQ, QQQC
Renren Inc. engages in the operation of Internet portal sites and social networking sites, online advertising services, online gaming operations, and the provision of Internet value-added services. Its platforms includes Renren.com, Game.renren.com, Nuomi.com, and 56.com. The company was founded... More
Industry: Internet Information Providers
Other News & PR