Lagging Growth, Tough Competition Has Renren (RENN) Looking to Mobile, e-Commerce
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Renren (NYSE: RENN) is seeing a little bit of pressure Tuesday amid reports that companies like Sina Corp. (Nasdaq: SINA) are pressuring Renren to look elsewhere for sales gains.
Sina operates one of the most popular micro-blogging services in China in Weibo. Though Renren reported a 31 percent jump in unique visitors in its most recent quarter, overall growth has been absent.
The WSJ cites Renren CEO Joe Chen in looking at segments like social gaming and e-Commerce as different revenue drivers.
Currently, Renren is dedicating about 45 percent of R&D to mobile expansion. At its peak, Renren's mobile segment generated about 10 percent of overall revs. But, Chen sees social gaming as cash-positive, with the segment becoming even more important as better mobile payment systems are unveilied.
Additionally, Renren will be looking for more acquisitions to bolster growth. The focus will be on mobile and group-buying initially, though no segment is out of play.
Shares of Renren are down 7 percent on the session.
Sina operates one of the most popular micro-blogging services in China in Weibo. Though Renren reported a 31 percent jump in unique visitors in its most recent quarter, overall growth has been absent.
The WSJ cites Renren CEO Joe Chen in looking at segments like social gaming and e-Commerce as different revenue drivers.
Currently, Renren is dedicating about 45 percent of R&D to mobile expansion. At its peak, Renren's mobile segment generated about 10 percent of overall revs. But, Chen sees social gaming as cash-positive, with the segment becoming even more important as better mobile payment systems are unveilied.
Additionally, Renren will be looking for more acquisitions to bolster growth. The focus will be on mobile and group-buying initially, though no segment is out of play.
Shares of Renren are down 7 percent on the session.
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