SE The stock price fell more than 20% after tuesday Marine Ltd. (SE) Reported third-quarter results showed an unexpected loss. The Singapore-based online services company said it is increasing investment as it competes with e-commerce rivals.
For the quarter ended Sept. 30, Sea reported a loss of 26 cents per share on sales of $3.31 billion. Analysts surveyed by FactSet on average expected Sea earn 12 cents per share US$3.17 billion promotion.
Compared with the same period last year, Sea’s third-quarter results narrowed its loss per share by $1.02, while sales increased by 5%.However, Sea has reported profit Over the past three quarters, the company has focused on cutting costs and improving efficiency.
“At this stage, we will prioritize investing in this business to increase our market share and further strengthen our market leadership,” Chief Executive Forrest Li said in a statement. Tuesday press release.
superior Today’s stock marketUS-listed SE shares fell 22% to 35.87.
SE Stocks: Competition is Increasingly Fierce
Sea is one of the largest Internet service providers in Southeast Asia, operating digital entertainment, e-commerce, digital payment and financial services. Sea’s products include Shopee, an e-commerce platform serving Southeast Asia and Taiwan; digital payments and financial services provider and global online game developer Garena.
E-commerce sales increased 16% year over year to $2.2 billion. Digital entertainment revenue fell 34% to $592 million.
The e-commerce business accounts for about two-thirds of the company’s revenue, but Shopee faces increasing competition from platforms such as TikTok, Shein and Temu. Pinduoduo Holdings (PDD).
“The entry of new players has intensified competition in our market,” Lee said during Sea’s earnings call on Tuesday. “The competition will likely accelerate the consolidation of market share, and when the market stabilizes, each remaining player will have a viable Sustained profitability. Invest now for market share growth and when that happens, we will have even stronger market leadership.”
A tough year for the sea
Southeast stocks down 29% Following the release of second-quarter earnings in August, Lee also said the company would increase investment.
Investors are wary of increasing spending from a company with a history of losses. Furthermore, the triple-digit sales growth the company achieved in the early quarters of the pandemic is unlikely to be repeated.
Overall, SE stocks have fallen 31% this year, including Tuesday’s losses.
SE stock ranks 13th among 60 stocks in IBD’s Retail Internet Industry Group IBD inventory check. It has an overall IBD rating of 49 out of 99.
IBD’s Composite Ratings combine fundamental and technical indicators to outline a stock’s strengths. The best-rated growth stocks have a Composite Rating of 90 or higher.
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