By midmorning, the stock had taken off 10.7% to $3.37.
The Beijing-based social networking platform said it expects to generate revenues between $23 million and $25 million in the quarter ending March. This represents a 40% to 45% year-over-year decline.
Analysts surveyed by Thomson Reuters had anticipated first-quarter sales of $30.41 million.In the fourth quarter, the company reported total net revenues of $30.7 million, a 29.1% year-over-year decrease in the three months to December. Online advertising sales were down 17.9% to $10.2 million, while gaming net revenue declined 39.7% to $15.6 million. While accumulated activated users on Renren.com increased 15.7% to 206 million, monthly unique log-in users decreased 19.6% to 45 million. Must Read: Warren Buffett's 10 Favorite Dividend Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates RENREN INC -ADR as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate RENREN INC -ADR (RENN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity."
- You can view the full analysis from the report here: RENN Ratings Report