hit counter html code

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.




X



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

My Daughter Vanished After Leaving Her Son with Me — The Call I Got Weeks Later Crushed Me

My Daughter Left Her Son with Me and Vanished — What I Found in His Bag Left Me Shaken It wasn’t unusual for my daughter Jane to drop…

Neighbor Van.dalizes My Windows After I Declined to Pay $2,000 Vet Bill

Julia’s peaceful suburban life spiraled into chaos after she refused to pay $2,000 for her neighbor Linda’s dog’s minor injury treatment. When Max, Linda’s golden retriever, got…

The boy screamed at his mother’s grave that she was alive – no one believed him until the police arrived

He Visited His Mother’s Grave Every Day—Until the Truth Rose from the Ground Every day in May, visitors to the cemetery noticed a young boy sitting by…

Jennifer Garner actions towards wheelchair-bound homeless man

Just when fans believed Jennifer Garner had shown all the warmth and kindness she could offer, the 51-year-old actress once again proved why she is so deeply…

My 5-year-old Accidentally Uncovered My Wife’s Lie by Wearing Her High Heels and Lipstick

Jonathan here, thinking I had life all figured out—just a regular guy living an ordinary life. I’ve been married to Mary for six years, and we have…

Great ending: My Mom Told Me Not to Wear My Wedding Dress Because “It Would Outshine My Sister’s”—At My Own Wedding

When My Mom Asked Me Not to Wear the Dress of My Dreams on MY Wedding Day “So I Wouldn’t Outshine My Sister,” I Finally Understood How…

Leave a Reply

Your email address will not be published.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