It sure isn’t a great time for Chinese internet IPOs! Stocks for Renren (RENN.N) have been in decline for several days after their debut on the New York Stock Exchange and now things don’t seem to be too rosy for Jiayuan.com (DATE.O) either.
Jiayuan opened at $11 a share on the NASDAQ, rose slightly in early trading, and then tumbled to hit an intra-day low of $9.76. It’s now back up at $10.52 (4pm EDT). Its IPO coincides with the IPO of FriendFinder (FFN.O), a U.S. adult dating website which fell 23 percent in its debut. Are investors shunning dating sites in general or are Chinese internet stocks just screaming “bubble time”?
For a closer look at Jiayuan’s IPO, check out this report by Rick Martin of Penn-Olson.