Sea Ltd ADR (SE)

Shares of Sea Ltd ADR (SE) dropped by 5.33% from $40.00 to $37.87 in the trading on Monday, December 11, 2023. The reason why SE is down today is due to TikTok's entrance into the Indonesian e-commerce market. TikTok announced plans to acquire 75% of GoTo's Tokopedia for $840 million and invest additional funds to become a significant player in Indonesian e-commerce. Sea Limited, which heavily relies on Southeast Asia and Indonesia for revenue, faces concerns over increased competition from TikTok's ambitious move into the region. Analysts had mixed reactions to this development. Local bank DBS downgraded SE shares to Hold and reduced the price target to $42, while Loop Capital in the U.S. raised its price target to $43, citing potential for robust earnings growth despite TikTok's competition.

Shares of Sea Ltd ADR (SE) dropped by 7.50% from $39.72 to $36.74 in the trading on Wednesday, November 29, 2023. The reason why SE is down today is due to TikTok's growing interest in the Indonesian e-commerce market, which is viewed as a direct threat to Sea Limited's operations in the region. TikTok, owned by ByteDance, is actively pursuing partnerships with Indonesian e-commerce platforms, provided it complies with local regulations. TikTok's move follows its suspension of e-commerce transactions within its TikTok Shop app in Indonesia due to new regulations banning direct e-commerce payments through social media channels. While these developments were initially seen as favorable for traditional e-commerce players like Sea Limited's Shopee, TikTok's aggressive entry into the market has raised concerns and uncertainty among investors. The situation is being closely monitored to gauge its impact on Sea Limited and the broader e-commerce landscape in Indonesia.

Shares of Sea Limited American Depositary (SE) dropped by 22.07% from $46.03 to $35.87 in the trading on Tuesday, Novemeber 14, 2023. The reason why SE is down today is due to an unexpected announcement of a quarterly net loss by the company.

• Quarterly Report Reveals Mixed Results: In its third-quarter report, Sea Limited reported a year-over-year revenue growth of 4.9%, reaching a total of $3.31 billion. However, this positive growth was overshadowed by a net loss of $144 million, equivalent to $0.26 per share, as per generally accepted accounting principles (GAAP). This result diverged significantly from analysts' expectations, who had forecasted a net income of $0.03 per share on lower revenue of $3.11 billion.
• Revenue Streams Analysis: Breaking down the revenue streams, Sea Limited's e-commerce and other services revenue within its top line experienced a notable surge, growing by *22.3%** year over year to reach $2.417 billion. This impressive growth included a remarkable 31.7% increase in core marketplace revenue, which amounted to $1.3 billion. In contrast, the digital entertainment segment witnessed a substantial decline, with its revenue dropping by over a third to $592.2 million.

The stock of Sea Limited dropped by 28.68%% after the e-commerce and digital entertainment provider released a financial report showing revenue below analysts' expectations. The reported revenue was notably -12.09% lower than the Zacks Consensus Estimate of $3.42 billion.

https://www.zacks.com/stock/news/2136536/compared-to-estimates-sea-limited-sponsored-adr-se-q2-earnings-a-look-at-key-metrics

SE's stock fell after their earnings missed estimates and gaming revenue plunged 43%, raising questions around its nascent profitability drive. Despite posting its second consecutive quarterly profit, Sea said revenue grew just 5% and a goodwill impairment charge of more than $100 million slashed net income to $88.1 million, missing the $224.4 million analysts expected.

https://finance.yahoo.com/news/sea-misses-profit-estimates-showing-110028583.html