Sea Stock Plunges on Q3 Report, Faces Challenges in Digital Entertainment and E-Commerce Sectors
Portfolio Pulse from Anusuya Lahiri
Sea Limited (NYSE:SE) reported Q3 FY23 revenue of $3.310 billion, surpassing consensus but with an adjusted EPS loss of $(0.26), missing expectations. Digital Entertainment revenue fell by 33.7% Y/Y, while E-commerce and Digital Financial Services revenues grew. The company holds $7.9 billion in cash and equivalents. Despite revenue growth, SE shares dropped by 21.90% after the report.
November 14, 2023 | 5:44 pm
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NEGATIVE IMPACT
Sea Limited's Q3 FY23 report showed higher revenue but a miss on EPS. Digital Entertainment revenue declined, while E-commerce and Digital Financial Services grew. Shares fell sharply by 21.90%.
The sharp decline in share price following the earnings report indicates a negative market reaction, particularly due to the EPS miss and the drop in Digital Entertainment revenue. The growth in E-commerce and Digital Financial Services may not have been enough to offset investor concerns, leading to a significant short-term negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100