- Sea Limited reported its FQ1 earnings results that beat the consensus estimates on revenue and EPS. It was a relief as SE stock was battered over the past six months.
- However, we are concerned over Garena's slowing growth. Furthermore, Shopee's guidance range was also widened due to inflation, and macro headwinds.
- The company is also still unprofitable, even as it scales Shopee up rapidly to improve efficiencies. We think the stock is likely to move sideways in FY22.
- We reiterate our Hold rating with a PT of $90, as the risk/reward profile remains challenging.
For further details see:
Sea Limited: Could Be Stuck Here For A While