SE - Why Sea Limited Stock Soared 20% This Week
2023-09-28 17:46:18 ET
Shares of Sea Limited (NYSE: SE) are up 20% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence , following news that China-based competitor TikTok Shop will face a regulatory ban on e-commerce transactions in Indonesia.
Earlier this month, Sea Limited told investors it was preparing to lay off 3% of employees at its Shopee e-commerce business in Indonesia -- which stands tall as Southeast Asia's largest economy --- to curb cash burn. For perspective, Sea Limited generated roughly two-thirds of its total revenue last quarter from e-commerce transactions.
But on Monday, Sea Limited Stock rallied more than 12% amid reports that government officials in Indonesia were considering new regulations to restrict social media platforms from integrating e-commerce capabilities. The move would undoubtedly hamper up-and-coming e-commerce competitors like TikTok Shop.
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Why Sea Limited Stock Soared 20% This Week