- Sea Limited is slated to release its Q1 earnings card on May 17. Investors eagerly anticipate a reassuring card, given SE stock's massive 80% drop from its highs.
- We believe the market has been pricing in regional headwinds in Southeast Asia. The region has also been hampered by growth, inflation, and recession fears.
- Sea Limited's revenue and EPS estimates have also been downgraded markedly. As a result, its path to profitability could be impacted by weaker discretionary spending.
- We revise our rating from Buy to Hold. We urge investors to first watch for a strong consolidation before adding more exposure.
For further details see:
Sea Limited: More Pain Ahead Before Reversing