Pacific Crest analyst Evanwelson released report Wednesday

Pacific Crest is one of the underwriters of the IPO deal for everyone in May, when everyone landed at the New York Stock Exchange at a $14 IPO price. Wilson formally included everyone in the research area in June.

In a report released today, Mr. Wilson said he could not comment on the disappointing third-quarter results of the 2011 fiscal year on November 10, but now he is no longer restricted and has decided to slash expectations for everyone's performance this year and next. Mr. Wilson now estimates that everyone has a revenue of $117.7 million trillion and a loss of 1 cents for the 2011 fiscal year, which was expected to yield 121.5 million dollars and 1 cents per share. Wilson also estimated that the 2012 fiscal year for everyone revenue of 170 million U.S. dollars, lower than the previous expected 200 million U.S. dollars, a loss of 5 cents per share, previously expected to lose 1 cents per share.

Mr. Wilson points out that everyone is facing competition from other Internet companies in China, such as Sina (Nasdaq:sina) and Tencent (0700.HK), which have led everyone to "profit-impaired investment activities" that are inconsistent with the strategy described by the company in its roadshow before the IPO. Wilson currently rated Sina's shares as "flat with the market," the Tencent stock rating as "overweight."

"It's not surprising that we didn't mind everyone spending, because the company is looking to develop sticky rice and the social networking market is at an early stage so everyone has to spend to stay competitive," Wilson said. However, the level of investment by everyone has proven to be well beyond the level predicted by management less than a year ago, and the company expects sales from such investment activities to be far less than expected. Much of this investment is a response to the "serious homogenization" of the Chinese social-networking market, which we have mentioned before. ”

"China's largest social networking site has shifted its direction towards the same theme, which is to be a hybrid of Facebook and Twitter and is functionally similar to Twitter," the report added. Whether it is Tencent's friends network and QQ space, or Sina Weibo and everyone is so. The origins of each social networking site are different (perhaps friends and everyone except), but end products are becoming extremely similar. This means that it seems that every social networking site is increasingly not equipped with product differentiation. ”