Renren’s stock has slipped after a mixed Q2 earnings report earlier this week, where net revenues were $44.8 million, up 47.5% year over year, but advertising revenues decreased and analysts are worried that the social network may be losing its potential as the “Facebook of China”. The stock has dropped around 25% over the last few months and the big question is whether nor not now is the time to buy cheap. I look at what some analysts are saying below.

Paulo Santos emphasizes that Renren is a clear sell over at Seeking Alpha, the problem is that Renren’s revenues are increasingly blending towards gaming, and that turns the site into more of an online gaming site than a social network. This becomes a problem because the online gaming market in China is highly competitive, as are the stocks for said companies. A whole raft of companies like Perfect World and Changyou are available at a a lower price/earnings ratio, which makes them more attractive. If Renren continues to shift towards being a game company,

Jiang Zhang looks at the user growth and sees Sina’s user growth as being faster than Facebook.

As of Q2, Renren has 162 million activated users, +30% y/y and 5% sequentially, and 45 million monthly active users, +30% y/y and 12% sequentially.

His concern, however, is that Renren is losing advertising grown to better known Chinese social sites like Sina Weibo and Tencent, and that Renren needs to work on its mobile advertising strategy to get that up to snuff as well.

Take a look at the Renren chart here, and let us know whether you’re going to buy on the dip or not.