SE - Sea Limited: Gaming Trends Continue To Soften

2024-04-16 12:29:04 ET

Summary

• Sea Limited's stock has rallied nearly 40% this year, but a number of risks continue to cloud the horizon.
• The core risks include competition from larger e-commerce companies, macroeconomic uncertainties, lack of major gaming releases, and cost inflation.
• Despite these risks, Sea enjoys secular tailwinds in the fast-growing Southeast Asia region, but caution is advised for investors.
• I'd wait for Sea to fall back to the $40s before buying back in.

Amid sharp market volatility this year that has created widely divergent gaps in performance in the tech sector, Sea Limited ( SE ) has been among the few e-commerce companies to rally substantially this year, with shares of the company commonly referred to as the "Amazon of Southeast Asia" up nearly 40% year to date....

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