SE - 1 Stock Down Nearly 59% that Wall Street Expects to Soar 61%
2023-12-22 08:25:00 ET
Singaporean e-commerce giant Sea Limited 's (NYSE: SE) share price has plummeted nearly 59.7% from its 52-week high of $88.84. It was once touted as a high-octane stock, but investor sentiment for the company has soured due to a multitude of reasons, including a struggling gaming business, a high cash burn rate, a surprise loss in the third quarter of fiscal 2023 (ending Aug. 31, 2023), and the recent news of ByteDance's TikTok reentering the Indonesian e-commerce market .
Despite these headwinds, the consensus analyst target price for Sea is $60, implying an upside potential of nearly 61% from its current price. While the target price seems a tad too optimistic, there are still many tailwinds that can drive the stock significantly up in the coming months.
Despite being a leading e-commerce player in multiple Southeast Asian markets, Sea's Shopee business is not immune to the challenges posed by increasing competition from TikTok and Alibaba Group 's Lazada. Responding to increasing competition, Sea is prioritizing scale, monetization opportunities, cost efficiencies, and market share gains over near-term profitability -- similar to the strategy of e-commerce leaders Amazon and Alibaba.
For further details see:
1 Stock Down Nearly 59% that Wall Street Expects to Soar 61%