Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese social networking platform Renren (NYSE: RENN ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Renren's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Beijing, China (2002)|
|Market Cap||$1.5 billion|
|Industry||Internet software and services|
|Trailing-12-Month Revenue||$143.9 million|
|Management||Founder/Chairman/CEO Joseph Chen
CFO Hui Huang
|Trailing-12-Month Operating Margin||(46.3%)|
|Cash/Debt||$922 million / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 28% of the 258 members who have rated Renren believe the stock will underperform the S&P 500 going forward.
Renren might look good, but it's an interesting case. Red thumb because anyway you slice it, [Renren] is a lose-lose: if China becomes more restrictive, less open, more communist, it can take out [Renren] in an instant. Even if China remains stable, the company's valuation is sky-high. If China magically turns into a free, open country, [Renren] will have competitors like Facebook, Twitter, etc. and lose its advantage.
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