The current market environment has gotten flipped on its head compared to the past few years. In 2021 and 2020, many investors cared little about profitability and cash generation. Instead, they focused on companies attacking large addressable markets and prioritized a company's potential. Now that the tides have turned, these high-growth stocks have gotten beaten down for their lack of profitability.
Sea Limited (NYSE: SE) is one of these stocks that has gotten crushed. Shares are down almost 68% year to date, and its profitability has continued declining. During 2020 and 2021, investors were seemingly satisfied with the company's high expansion rates, but now some investors are asking: When will Sea Limited become profitable?
It's clear that this e-commerce, gaming, and fintech giant won't reach consistent profitability anytime soon. So should investors jump ship or remain patient for the next few years?
For further details see:
Will This High-Growth Stock Ever Become Profitable?