StockTalk(8.16): Sea Ltd's stock plunge: What does it mean for the company's e-commerce ambitions?
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$Sea (SE.US)$ Sea Ltd's stock plummeted by 29%, causing a loss of nearly $10 billion in market value and a quarter of co-founder Forrest Li's fortune. The company's disappointing revenue and plans to increase investment in e-commerce led to the sell-off.
Sea now faces fierce competition from Alibaba's Lazada and ByteDance's TikTok, risking a return to losses after three profitable quarters. Analysts express concerns about the effectiveness of Sea's investment and anticipate a brutal battle ahead. Once the world's best-performing stock, Sea's capitalization now stands at $23 billion, down significantly from its peak in November 2021.
Li aims to defend market share by expanding the company's live-streaming arm, but the outcome remains uncertain amidst intense competition and pressure from rivals like GoTo Group. Investor confidence has taken a hit, and the share price is expected to remain range-bound.
How will Sea Ltd's recent stock plunge impact Singaporean investors?
Does it affect your expectations for the e-commerce industry?
Can Sea effectively compete against Alibaba's Lazada and ByteDance's TikTok in e-commerce?
Does it affect your expectations for the e-commerce industry?
Can Sea effectively compete against Alibaba's Lazada and ByteDance's TikTok in e-commerce?
Join us and share your thoughts on today's topic. Please leave a comment below to share your opinion with us. Your feedback is valuable, and we appreciate your participation.
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How will Sea Ltd's recent stock plunge impact Singaporean investors?
Join us and share your thoughts on today's topic. Points are awaiting!
Moon fairy 大炮仙 ❤ : Everyday i hear that shop pee pee pee shop pee pee pee hear until i tio gong tao, after that head blur blur go shopee there anyhow click anyhow buy. Sometimes even inside toilet you also can hear that shop pee pee pee huanting you.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Ruku Yuan : The gaps in many areas still need to be filled back and the lack of coolness in the market
Whether it can still go back to 56 yuan is a big question
Jungle lee : Due The macroeconomic outlook is full of challenges, and tepid spending is also putting pressure on Shopee, i dont think this is a good opportunity to invest in, lets see how the market share been expanding on live streaming arm first.
VKFA : Reassess strategy, we need also save our capital 🫢🫣
CasualInvestor : To stay competitive $Sea (SE.US)$ will need to relook at how products placed are competitive to other platforms. Else customers stop using the platform altogether since there’s constantly cheaper alternatives for same products sold on other platforms.
ZnWC : Sea Ltd's Q2 2023 Earnings reported total revenue declined by 12% on a QoQ basis mainly due to the drag from the Digital entertainment segment as revenue plunged 43% QoQ. The E-commerce segment held its ground with a 1% growth QoQ.
Net income declined QoQ from $423 million to $87 million.
The disappointing earnings is reflected in the stock performance as share price plummeted 24% after announcement. I think the company is considering further cutting cost soon and layoff next on the list.
I'm not overly worried about the e-commerce industry as the revenue decline is mainly in the Digital entertainment segment. But market share may decline further due to competition and macroeconomics factors such as China's economy slowdown and global recession risk.