Renren, China’s famous social media platform which was regarded as the future Facebook Inc (NASDAQ:FB) of China is now rushing towards its probable end. The company has lost more than three quarters of its value since its launch in 2011. Analysts are expecting that it will go by 18% in the next year to $2.74. The company’ interface, user experience and audience has have tumbled massively. In a program on Bloomberg, Yvonne Man said that so called Facebook Inc (NASDAQ:FB) of China is no more the talk of the town. It has lost its fame and users. Back in 2011, it was valued around 72 times its total sales but now the company is being rated badly by analysts.
Revenue of Renren has dropped by 54% till now to just $19 million. Analysts’ recommendations are one buy, two holds and six sell for the doomed Facebook Inc (NASDAQ:FB) of China. Messaging and social media platforms like Weibo and WeChat have annihilated the fame of Renren. Renren could not sustain its innovation in the ever dynamic world of social media platforms.
Facebook Inc (NASDAQ:FB) is yet to make a significant mark in China because of regulatory issues and strict governmental policies. Recently, Mark Zuckerberg talked to Chinese experts and general people in Chinese language to make an impression. Facebook Inc (NASDAQ:FB) has apparently an open ground for growth in China. People are enthusiastic about Facebook Inc (NASDAQ:FB) and the company can make a difference in the emerging markets by making China as a launching pad.
There are 438 million unique users of WeChat. Renren has 44 million unique users and Weibo has 157 million users. These figures and analysis show declining graph of Renren, which will, as it’s obvious now, never be the Facebook Inc (NASDAQ:FB) of China.
Ken Griffin‘s Citadel Investment Group held 4.58 million shares of Facebook Inc. (NASDAQ:FB).