Sea Limited 's (NYSE: SE) stock price has declined more than 60% since it hit a record high of $372.70 per share last October. The Singapore-based tech giant -- which owns the e-commerce platform Shopee and the gaming company Garena -- struggled with concerns about its decelerating growth, rising expenses, and its debt-fueled expansion into overseas markets.
Sea remains a divisive stock. The bulls believe it's well-poised to capitalize on rising e-commerce penetration rates in Southeast Asia, Latin America, and other emerging markets. They also believe Garena's top game, Free Fire , will continue to lock in gamers and offset Shopee's losses. The bears believe its overseas expansion is costly and reckless, that Free Fire will lose its momentum, and that its long-term growth forecasts are unsustainable.
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1 Red Flag and 1 Green Flag for Sea Limited's Future