China’s Renren Inc (RENN) Is No Facebook Inc (FB)

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Market bellwether Baidu.com, Inc. (ADR) (NASDAQ:BIDU) set the tone last month, when China’s top search engine projected a 4% to 7% sequential revenue decline this quarter. Youku Tudou Inc (ADR) (NYSE:YOKU) — China’s leading video-sharing website, and an appropriate benchmark given Renren’s push to take the company on through 56.com — spooked investors with a forecasted sequential decline of 19% to 25% this quarter.

In other words, Renren’s expected quarter-over-quarter decline of 8% at the midpoint of its range is perfectly reasonable. The 37% to 43% year-over-year growth is more than respectable.

Investors may want to hold back until Renren Inc (NYSE:RENN) turns the corner of profitability or gets its brand advertising revenue moving in the right direction, but the busted IPO has already been marked down for those shortcomings.

Renren may be cheaper than you think right now.

The article China’s Renren Is No Facebook originally appeared on Fool.com and is written by Rick Munarriz, Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Baidu and Facebook. The Motley Fool owns shares of Baidu and Facebook.

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