Renren‘s share price has been tumbling since its mega size IPO.   Investors worried if they have been paying too much for the so-called Chinese Facebook.  It went as low as US$6.55 last Friday, more than 50% off its IPO price of US14 a share.

But every cloud has a silver lining.  Renren released its first financial report after its IPO.  It significantly narrowed its loss: 78.5% decrease from a year earlier.  And it looks like the so-called Chinese Facebook might be break-even soon.  The news boost its share price.  It closed at US%7.6 on Monday, up 8%.

One thing Renren worried investors the most is Renren’s financial.  After all, last year it made a loss of US$64.2 million and its revenue was a mere US$76.5 million.  That means it lost 84 cents for every dollar it made. The company’s net loss for Q1 of 2011 was US$2.6 million, compared with US$12.1 million in the same period last year.  And its revenue increased 46.6% to US$20.6 million, of which, advertising more than double to US$8.1 million.  And  IVAS revenues (mostly game) was up 24.7% to US$12.4 million.

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Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...