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 Renren, (NYSE:RENN) plunged 11% Friday after the Chinese social networking specialist reported mixed quarterly results and weak forward guidance.

So what: Quarterly net revenue fell 5.6%, to $47.6 million, which translated to an adjusted net loss of $19.7 million, or $0.07 per ADS. By contrast, while analysts were expecting higher quarterly revenue of $48.26 million, Renren actually beat estimates that called for a larger adjusted net loss of $0.10 per ADS.

However, Renren also issued a dismal outlook for the fourth quarter, calling for revenue to fall to a range of $29 million to $31 million, or a 36% to 41% year-over-year decline. Analysts were modeling fourth-quarter revenue of $48.85 million.

Now what: CEO Joseph Chen explained, "While we continue to face short-term monetization challenges, our strategies are becoming more focused and clear."

To be sure, Renren did just launch a new "communication-oriented" mobile app in an effort to make their services stickier to younger users. What's more, Chen elaborated to say the restructuring of their gaming business should allow them to focus on creating higher-quality games going forward.

Even so, as long as Renren continues bleeding cash, and with no end in sight, I can't blame investors for taking a step back today. Until Renren can show it has what it takes to achieve sustained profitability over the long term, I'd prefer to stay on the sidelines.