This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Tudou Shares a No-Go In Debut

Stocks in this article: CARB PER YOKU

NEW YORK ( TheStreet) -- Tudou decided to push forward with its IPO amid a brutally volatile stock market. But the first day of trading for the "You Tube of China" is showing that its timing may not have been so good.

Shares of Tudou, whose American depositary receipts trade under the symbol TUDO on the Nasdaq, were down 7% to $27.10 shortly before 11:30 a.m. ET Wednesday.

Tudou has touted its increasing number of unique users, which jumped from 50 million in December 2007 to 182 million in December 2010.

The company provides advertising services, mobile video services and owns one model patent relating to a search engine. But it has never turned a profit. Revenue has been climbing, but the company lost $56 million in 2010, and for the first three months in 2011, lost $26 million.

Online video is capital-intensive, and it could be that Tudou will eventually make money. The company is up against big competitors like Youku (YOKU) and, but not YouTube, which isn't accessible by Chinese viewers. Tudou is using the proceeds to fund expansion of Internet bandwidth capacity, content procurement and in-house content production.

"Companies that want to go public in this "brave new world" will face increased scrutiny, and they'll have to be ready - starting with an infrastructure that shows they're prepared to take their business to the next level," said Steve Hobbs, managing director at Protiviti. He believes that investors and venture capital funds are kicking the tires a lot harder to make sure that potential IPOs are on solid ground and really ready to go public.

The recent volatility in the stock market has not been kind to the IPO market. Only two companies took the plunge into the public arena during last week's roller-coaster ride, with surprisingly good results.

Carbonite (CARB) and SandRidge Permian (PER) both lowered their expectations on their deals, which may be the reason the market accepted them so well. Carbonite is up 4% over just a few days. SandRidge Permian initially tumbled, but now the stock is now above its offering price of $18.

--Written by Debra Borchardt in New York.

>To contact the writer of this article, click here: Debra Borchardt.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs