This week's earnings report from Chinese gaming giant Shanda Interactive
Stateside, when folks think IM, they think about either Time Warner's
That's why I think QuanQuan may be huge for Shanda if it pans out just right. Shanda is in the process of embedding the QuanQuan IM interface into its popular games, where Shanda is the market leader. As many as 2.5 million Chinese residents are playing in Shanda's assortment of virtual worlds at any given moment.
For now, QuanQuan will give those gamers an effective platform with which to communicate with one another. That's cool. Yet the potential is even greater in the future, for if QuanQuan catches on, it won't be just gamers using the interface. Remember when America Online began offering its AIM software to non-subscribers? Internet users could download the free software at AOL.com, and that became a great way for non-AOL users to keep in touch with their "you've got mail" buddies. Eventually, non-subscribers began to use it to communicate with other non-subscribers, and the headcount of AOL subscribers became irrelevant. AIM had become its own monster.
That's what a killer application will do for you. Just as PayPal has now taken on a prolific life of its own outside parent company eBay
I'll tell you how important: very. Yes, it all starts with gamers exchanging messages with gamers. But where it goes from there isn't exactly a game. The online advertising and self-promotional features of controlling the gateway to virtual communication can be a wonderful thing. For investors, that's one virtual world worth looking into.
Shanda was recommended in the January issue of our Rule Breakers newsletter service. Learn more about the selection -- and the many other ultimate growth stock candidates -- with a free trial subscription.
Longtime Fool contributor Rick Munarriz believes in the sector, but he does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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