UPDATE: Morgan Stanley Reiterates on Renren Following 4Q13 Results

In a report published Wednesday, Morgan Stanley analyst Timothy Chan reiterated an Underweight rating on Renren RENN, but removed the $2.70 price target. In the report, Morgan Stanley noted, “We retain our UW rating after RENN's 4Q13 results. 4Q13 revenues were US$31mn, down 25% QoQ and 29% YoY. Due to mobile cannibalization, its ad sales dropped 32% QoQ and 18% YoY, while its game sales decreased 23% QoQ and 40% YoY. Excluding Nuomi, operating loss expanded to US$43mn, vs. -US$25mn in 3Q and -US$23mn a year ago. Net loss from continuing operations was US$28mn, vs. -US$14mn in 3Q and -US$16mn a year ago. Renren's monthly active users declined for the third consecutive quarter, down 10% QoQ and 20% YoY to 45mn in December 2013. The company acknowledged the intense competition from the market leader, which we believe is Tencent's Weixin (WeChat).” Renren closed on Tuesday at $3.77.