Still betting on 56 net losses

This reporter Chen February 15, the company announced the 2011 years as of December 31, 2011, the Four seasons without the audit of the initial performance. Renren expects revenues of about 3100 to 33 million U.S. dollars in 2011, estimated at $15 million trillion and $17 million trillion in the four quarter. Even so, Renren will add a 60 million-70 million dollar investment budget this year to the 56 network of video sites it buys.　　Under the loss, Renren still bets 56 nets, the industry believes that the future of all companies will be social + video in the end, is intended to plot mobile internet business opportunities. Last year four, Renren or the loss of 150.017 billion U.S. dollars per person company announced February 15 to December 31, 2011 of the 2011 year of the four years of unaudited initial performance, of which operating income in the previous estimate of 31 million to 33 million U.S. dollar range. According to non-US GAAP, excluding compensation payments for equity and impairment and amortization of intangible assets, the operating losses in the fourth quarter are estimated at between 15 million and 17 million dollars.　　The main reason for the loss was the additional investment in all operations by Renren and the combined performance of 56 nets. Renren expects to generate 2 million to 3 million dollars in disposable non-cash expenses this quarter, mainly for impairment of intangible assets such as xiaonei.com.　　In addition, the company will be selling the art Dragon net in the quarter of 51 million dollars to obtain one-time capital gains. Chen, chief executive of Renren, predicts that everyone's annual operating income will grow by 50% to 55% in 2012, equivalent to 2011 growth, but not profitable in 2012. Chen also said that we believe that we have chosen a correct route, in China's growing social networking industry, we will further strengthen the company's fundamentals, for long-term sustainable development lay a good foundation for the long-term value of shareholders. After the company's performance forecast, Credit Suisse published a study that downgraded its rating to "neutral" and lowered its target share price to $5.40 trillion. Credit Suisse believes that 2011 years of the Four seasons of all companies weak performance, is expected to slow down in 2012, 2012 will be mainly investment, earnings per share decline. Although yields are low, stock prices are likely to be underpinned by higher monetary values.　　Morgan Stanley maintained a "hold-and-see" rating for everyone, with the target price cut from 6.5 to $5.6. Still betting on the 56 net under the loss. However, it is quite surprising that after the unaudited financial performance part was disclosed in the fourth quarter of 2011, Chen said, "taking into account the competitive environment and growth opportunities of the industry, we have decided to increase our investment in line of business, especially in mobile technology and products." In addition, in order to improve the user experience, we have recently acquired a video asset 56 network will continue to upgrade its bandwidth and servers. Therefore, we will append 60 million to the current year's forecast70 million dollars in investment budget.　　"In the last year, the company announced a wholly-owned acquisition of video-sharing site 56.com, took out 80 million of dollars in cash, and the acquisition is this is the first major strategic acquisition of all companies after the launch." Although Chen is optimistic about the future of the 56 network, the agency does not think so. Morgan Stanley reported that these new investments will continue to reduce everyone's near-term profit margins. Renren's market value has shrunk to $1.5 billion trillion since it went on sale to the US last May 4.　　Renren's expansion in many areas of video-sharing, question-and-answer websites, light blogs, matchmaking sites, travel products and group buying has not led to a timely profit. Morgan Stanley, Deutsche Bank, the IPO underwriter for Renren, has lowered the target price of Renren several times in a year.　　In a recent revaluation of Deutsche Bank on Renren, the figure slipped back to $466 million trillion.　　Social + video for mobile internet business Although, everyone is currently "dabbling" in a wide range, but to choose from these numerous expansion areas as a future breakthrough, then 56 network or the best choice for everyone. Everyone company (formerly Thousand Oak Group), was founded in 2002. 2006 acquisition of the network, and in 2009 will be renamed as Renren Net, now has more than 117 million registered users, is China's most well-known real-name SNS social network. Its income mainly comes from the network advertisement and the Internet value-added service two parts.　　December 2010, "Thousand Oak Interactive Group" officially changed its name to "everyone Company", become a social network, social E-commerce and network games, such as a comprehensive internet company. All companies rely on "socializing" to prosper. and 56 network in the video website industry is known as "original". In the second half of 2011, 56 Nets have launched a number of homemade programs. From the amount of data on the broadcast, the 56-net homemade program "cost-effective" is far higher than the video site touted some of the high-priced hit drama. In less than six months, the "56 production" of the total number of homemade programs have exceeded 200 million times. 56 Network Vice President Li said, "User original video, ' 56 production ' of homemade programs and joint production content will gradually establish 56 network differentiated competitive advantage, with the trend of video socialization increasingly clear, sns+video the chemical effect will continue to highlight." On the other hand, with the rapid development of mobile internet, social and video applications based on mobile terminals are becoming the focus of enterprises. According to Analysys International data show that 2011 mobile internet users are expected to reach 430 million, 2011 China's mobile internet market size reached 85.1 billion yuan. With the popularity of smartphones and the development of mobile Internet, the number of users surfing the Internet through mobile terminals is also soaring, in which social and video viewing is the main hobby of users. Renren, 56 Network is currently developing with video viewing, uploading, sharingEven the mobile video client that integrates lbs functions. They want to launch a series of homemade entertainment programs that meet the needs of a large number of users for entertainment and leisure during the fragmentation of time.　　There is no doubt that Renren's application in the social arena, coupled with 56 of the network in the video application advantages, exerting force mobile Internet social, video field of comprehensive advantages. From the above analysis can be seen, the company further increase the 56 net investment is also reasonable, under the loss of the company, although the pressure is very large, but this may be the dark before the dawn.