Investors and traders bid high on Sea Limited’s share prices after the company announced earnings for its e-commerce service Shopee
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Sea-Limited (NYSE:IT), a Singapore-based company that owns e-commerce site Shopee, saw its shares rise over 10% this morning following the release of its earnings results.
Sea reported net income of $331 million (54 cents per fully diluted share) on revenue of $3.1 billion for the three months ended June.
Shares were trading at around $74 this morning, with a market cap of over $42.6 billion. So far in 2024, SE stock is up 92%.
Shop small!
There were differing opinions among analysts about the significance of these figures, but traders nevertheless pushed up the share price. Tokenist said its second-quarter results fell short of expectations. Bloomberg said the results exceeded estimates.
Shopee competes with several other Southeast Asian market makers for the loyalty of sellers and influencers. These include The Alibaba Group Holding (NASDAQ:BABA) Pinduoduos (NASDAQ:Traffic rules) Temu and ByteDances TikTok. Shopee has increased the commissions it charges its merchants following a cost-cutting campaign.
Shopee recently had to put a stop to rumors of major layoffs in Indonesia. The rumors emerged after Shopee changed its delivery practices there to comply with the country’s competition laws. Indonesia accused Shopee Indonesia of favoring its own delivery service over others.
While Shopee has cut costs in some areas, it has increased its marketing budget. The company recently signed a deal to be the presenting partner of the ASEAN Club Championship, a version of the soccer Champions League for Southeast Asia.
TipRanks lists Sea stock as a strong buy. Around 15 out of 20 analysts recommend buying and the price target is USD 80.65. Traders at Stocktwits are also very optimistic about the stock.
SE shares: What happens next?
Competition among online shopping sites in Southeast Asia is getting fiercer. The winners are even making Amazon (NASDAQ:Amazon) sweat.
At the time of publication, Dana Blankenhorn held a LONG position in AMZN. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.
At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.
