renren up 40%. can this rally of these stocks last though? joining us on the fast line is kathleen smith. kathleen, great to have you with us. i want to focus in on renren. it was up 20% in today's session alone. are we to draw from this that there is some merit in bidding the stock higher based on facebook's valuation? this stock has done terribly so far since it's been public. >> i think you need to put renren in some background. the ipo was probably the worst ipo return of the 125 ipos that were priced in 2011. so renren is coming off a bad period. also it was a chinese adr. and there have been concern in 2011 and continues to be about chinese accounting. we had those factors that had gone into putting heavy downward pressure on that stock. as we come out now into a more improved market and some statistics that could help, our ipo index was down 21% in 2011. so ipos had very poor returns. now coming into the first part of this year early 2012, we're seeing an 11% return on the index. twice as strong as the overall market averages. more mon

he's a cofounder of like and watch, he lives in china, and he says, if you own renren, know what renreng its model to be one more sort of like a groupon. this is just classic, and we see it in these stocks right now in the reaction to facebook. >> look at seen -- sena today. i don't know if you saw that stock. >> i haven't, i've been paying attention to other stuff. >> all right, herb. we'll see you at 2:00. >>> let's get some viewer tweets now. fuegymoney wants to know, when will it be time to short netflix? i'm not a believer. >> if you want to get insight on this, go no farther than whitney tillson. he says there's still more to the up side and until whitney changes his tune and puts a note on why, it seems to me it's going higher. >> the next one says, is the dip a buy in bed, bath and beyond? going back to 63? >> i'm not big on bed, bath and beyond. i don't know why these things -- >> you said people don't buy 60-inch tvs on line. >> for me there's so many things. i don't know why staples exists, i don't know why bed, bath and beyond exists. i would be buying amazon over all of the

take a look at renren. it's a web sit. it's china's version of stays book. value since it listed on the new york stock exchange just this past may. it's a similar story for this website known as yoku. its a a chinese version of youtube. this is called dongdong.com. it's similar to amazon.com. they listed on the new york stock exchange december 8th of 2010. since then both companies stock prices as you can see have stanked. yoku, that is down by just about 30%. then taking a long at dongdong, that's plummeted even more. that's down by 70%. reasons for this include lack of transparency in chinese companies. another reason is tighter restrictions. will facebook share price soar or fall? only time will tell. a lot of investors will want to be facebook's new best friend. >> you hit it on the head, that transparency issue here in asia and china which has caused investors a lot of concern. been a lot of negative headlines coming out for chinese companies. >> still to come here on "world business today", we'll be moving away from china and talking about africa for t