It isn't easy to turn a profit streaming video in China.
Niche leader Youku.com
Despite the rough sledding, Youku continues to trade above the $12.80 price it went public at nearly a year ago. However, the profitless speedster that peaked at nearly $70 back in April has now fallen all the way down to the teens. Rival Tudou
Making money streaming video for free through an ad-supported model is hard. Just ask Google's
Youku has turned to Tinseltown for a new revenue stream. DreamWorks Animation
Youku is targeting 90% to 100% in revenue growth for the current quarter, a slight deceleration from its triple-digit pace of the past. Clearly, this is still an impressive growth rate, though Youku's still lofty valuation begs for profitability to begin entering the picture around here.
Narrower deficits are moving Youku in the right direction, but now it needs to get to the finish line before it becomes the next of the many busted Chinese IPOs.
There are now nearly 10 active Chinese growth stock recommendations in the Rule Breakers newsletter service, though Youku isn't one of them. Check them out with a free 30-day trial subscription.
The Motley Fool owns shares of Google. Motley Fool newsletter services have recommended buying shares of Google and DreamWorks Animation SKG. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.