SE Equity: Sea Crash in a Quarterly Miss

Internet service company in Southeast Asia Sea Ltd. (SE) on Tuesday to its lowest level since November 2022 after reporting second-quarter revenue that fell short of analysts’ expectations. SE stock is down nearly 29% on the day.


The Singapore-based company reported earnings of 54 cents per share for the quarter ended in June on revenues of $3.1 billion. However, analysts polled by FactSet were expecting sales of $3.26 billion and earnings per share of 65 cents.

In the year-ago period, Sea lost $1.67 per share on sales of $2.9 billion..

Sea stocks fell by 28.7%, closing at 40.58. With Tuesday’s stumble, shares are now down 22% year-to-date.

Sea shifts away from cost cut

Sea is one of the largest Internet service providers in Southeast Asia, operating businesses in digital entertainment, e-commerce, digital payments and financial services. Products include Sea Shopee, an e-commerce platform serving Southeast Asia and Taiwan; SeaMoney, a digital payments and financial services provider, and Garena, a global online game developer.

A cost-cutting overhaul the company began last year that included layoffs and reduced marketing spending brought Sea’s first quarterly profit in the last three months of 2022. But e-commerce spending slowed due to the company’s boost from the pandemic in 2021. , when its total sales reached triple-digit annual growth.

“In the past two quarters, we have not only achieved self-sufficiency, but also demonstrated the profitability of our model and our ability to manage rapid and significant shifts in operational focus as we see fit,” Chief Executive Officer Forrest Lee said on a conference call. With Analysts Tuesday.

He says the company will now ramp up its investment in growing its e-commerce business.

“Such investments will have an impact on our bottom line and may lead to losses for Shoppee and our group as a whole in certain periods,” Lee said.

SE Stock: Low Ratings

For the largest share of Sea’s business, e-commerce, revenue was $2.1 billion for the quarter, up 20.6% year-over-year.

Sales from the company’s digital entertainment business were down about 41% compared to the same period last year, to $529 million.

Stocks are weak IBD composite classification of 45, and even weaker than a relative strength rating of 15.

SE stocks rank 18th out of 60 stocks in the online retail group, according to IBD stock check.

You may also like:

Get an edge in the stock market with IBD Digital

Labor unions keep the heat at Starbucks and Amazon

Tesla Signals IRA Tax Credit Reduction for Model 3

Stocks near the buy zone

Learn how to pick great stocks? Read Investor’s Corner

Related Posts

Have You Seen How Kate Middleton Looked Before Her Marriage to Prince William? Check it Here!

We’re accustomed to seeing Kate Middleton as exceptionally slender and resonant, a picture of grace and elegance, particularly remembered for her radiant appearance at her wedding to Prince William. Despite…

Read more

Important reason why there are black dots on your car’s windscreen – you had better know what it means

The black dots, called a “marvel of engineering” by experts, are often overlooked, They are part of the frit band, a rough-textured enamel paint strip that frames the windshield’s edge….

Read more

Take a Seat, This Viral Cow Math Puzzle Will Take Your Brain for a Ride

fresh cow math puzzle is currently causing quite the stir on Twitter, leaving many scratching their heads—including myself. We’ve seen our fair share of monkey-themed brain teasers and riddles involving…

Read more

My 14-Year-Old Daughter Found a Pacifier in My Husband’s Briefcase — the Shocking Truth Almost Destroyed Me

When Jen’s daughter discovered a mysterious baby’s pacifier hidden in her husband’s briefcase, it unraveled a trail of secrets that led to surprising revelations, ultimately transforming their family in ways…

Read more

Homeless couple receives backlash for saying employment is not for them

This homeless couple’s decision to reject traditional work and opt for a tent lifestyle has sparked controversy and drawn criticism from all around. “Homelessness isn’t wrong if you’re looking at…

Read more

How To Make Old-School Creamy Pea Salad

There are certain recipes that never fail to bring about a wave of nostalgia for my childhood. Some of those recipes include my grandmother’s tomato sauce, banana bread, and creamy…

Read more

Leave a Reply

Your email address will not be published. Required fields are marked *