Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, digital entertainment company RealNetworks (NASDAQ:RNWK) has received a distressing two-star ranking.

With that in mind, let's take a closer look at RealNetworks' business and see what CAPS investors are saying about the stock right now.

RealNetworks facts

Headquarters (Founded)

Seattle (1994)

Market Cap

$489.4 million


Internet software and services

Trailing-12-Month Revenue

$569.4 million


Chairman/CEO Robert Glaser

CFO Michael R. Eggers

Return on Equity (Average, Past 3 Years)



$373.2 million / $0





CAPS Members Bearish on RNWK Also Bearish on

Microsoft (NASDAQ:MSFT)

General Electric (NYSE:GE)

CAPS Members Bullish on RNWK Also Bullish on

Ford Motor (NYSE:F)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 24% of the 62 All-Star members who have rated RealNetworks believe the stock will underperform the S&P 500 going forward. These bears include kristm and SeattleRoses, both of whom are ranked in the top 4% of our community.

Just last week, kristm Foolishly explained that the stock's demise is a decade past due:

Hello, this is the Y2K dot-com collapse calling for RealNetworks. ... I just called to let you know we forgot about you in 2000 and still have some business that needs to be addressed. ... Yes, we understand that you're about to launch the Next Great Thing but we've been letting you slide for about nine years now and my boss isn't very happy. He says you either bring out something popular now or we'll begin liquidation by the end of the year. Hello? Hello?

In an earlier pitch, SeattleRoses expands on the harsh realities facing RealNetworks:

[I]t is losing its market share (which was small to begin with) to its competitors, and goes with it is the steady revenue stream. ... It needs to have a breakthrough in the media technology, or something that take competitors by surprise -- like Apple did with iPhone.

It needs to improve the bottom line before the stock could perform well again. This is going to be an uphill battle for the management turn things around. Network media market is saturated and maturing, so growth potential becomes limited. Shareholders are going to have to suffer for a long time.

What do you think about RealNetworks, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick, Google is a Rule Breakers choice, and Microsoft is a selection of Inside Value. Motley Fool Options has recommended an options position on Microsoft. The Fool's disclosure policy always gets a perfect score.