Renren (RENN) Shares Slip as Zynga (ZNGA) Results Send Ominous Sign
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Renren (NYSE: RENN) shares are sliding Friday following a quarterly report from peer Zynga (Nasdaq: ZNGA) which had investors scrambling for the exits.
Though Zynga's top-line grew 32 percent, the social game maker swung to a GAAP loss of $85.4 million in the first quarter, or 15 cents per share, down from a profit of $16.8 million in the prior year's quarter. Cleaning up earnings, Zynga reported a profit of 6 cents per share.
One telling thing about Zynga is its efforts to expand beyond Facebook (Nasdaq: FB), from which it gets the lions share of its revenue. Looking ahead, Zynga said its sees booking of $1.425-$1.500 billion, mostly focused on the non-Facebook associated mobile market.
The results could bode negatively for Renren, often considered the Facebook of China. Should more and more companies follow suit and eschew social networking companies for their own gains, then Renren might see its popularity -- and profits -- "log off."
Shares of Renren are 3.6 percent lower with implied volatility up 5.7 percent from Thursday's close to 87 percent.
Though Zynga's top-line grew 32 percent, the social game maker swung to a GAAP loss of $85.4 million in the first quarter, or 15 cents per share, down from a profit of $16.8 million in the prior year's quarter. Cleaning up earnings, Zynga reported a profit of 6 cents per share.
One telling thing about Zynga is its efforts to expand beyond Facebook (Nasdaq: FB), from which it gets the lions share of its revenue. Looking ahead, Zynga said its sees booking of $1.425-$1.500 billion, mostly focused on the non-Facebook associated mobile market.
The results could bode negatively for Renren, often considered the Facebook of China. Should more and more companies follow suit and eschew social networking companies for their own gains, then Renren might see its popularity -- and profits -- "log off."
Shares of Renren are 3.6 percent lower with implied volatility up 5.7 percent from Thursday's close to 87 percent.
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