Why Renren Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chinese social networker Renren (NYSE: RENN  ) have popped upwards of 12% today, bucking the broader market sell-off, on news that the company is partnering with Japan's SnapDish.

So what: SnapDish is a food photo app that allows users to share pictures of food through mobile devices -- including Apple iOS, with a Google Android version in the pipeline. SnapDish has been downloaded about 120,000 times in Asia.

Now what: It may seem odd for such an announcement to prop up Renren's price so much, but keep in mind that just yesterday Facebook announced that it was acquiring popular mobile photo-sharing app Instagram for a hefty $1 billion, so there's obviously some value in social networks hooking up with social photo services. SnapDish's 120,000 users might not compare to Instagram's 30 million, but it's off to a strong start. I certainly consider this move a bit frothy, but that's what you get when you combine the buzzwords "China," "social media," and "photo sharing" on the heels of yesterday's news.

Interested in more info on Renren? Add it to your watchlist by clicking here.

Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services have recommended buying shares of Apple and Google. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1858879, ~/Articles/ArticleHandler.aspx, 12/22/2014 11:36:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement