Paying the Price for Market Leadership

"Sea Ltd may not have engendered itself with investors impressed with its ability to pivot like no other to actual profitability, now introducing an element of uncertainty. Valuations reflect this." - Angus Mackintosh (CrossASEAN Research)

* Sea Ltd saw its 3Q2023 result swing back to a loss after turning on investment at Shopee during 3Q2023 in the face of competition.

* The company was open about its renewed investment in growth during the previous quarter in the face of threats from TikTok Shop, which may have lessened post its Indonesia expulsion.

* Sea Ltd may not have engendered itself with investors impressed with its ability to pivot like no other to actual profitability, now introducing an element of uncertainty. Valuations reflect this.