It was tough going for Sea Limited (NYSE: SE) shareholders last month. The stock fell another 32.8% in January, according to data provided by S&P Global Market Intelligence . It was a continuation of the sharp sell-off across growth stocks that started at the end of November. Over the course of the last few months, Sea has now lost some 60% of its value.
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By now, you might have heard that the U.S. Federal Reserve said it will be raising its benchmark short-term interest rate, most likely starting in March. Higher rates decrease the present value of stocks , and high-growth, richly valued companies like Sea are among the most sensitive to interest rate changes. Though Sea isn't a U.S. company (it operates primarily in Southeast Asia), its stock is listed in the states. Thus, there's been a sharp sell-off of late as investors flee higher-risk, premium-valued names in favor of higher quality stocks.
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Why Sea Limited Stock Tanked Nearly 33% in January