Why Sea Limited Stock Sank 6% Today
Shares of Singapore-based e-commerce, payments, and online gaming company Sea Limited (NYSE: SE) closed down 6.4% on Wednesday, one day after news of an earnings beat (but a revenue miss) for the company's fiscal second quarter 2022 sent the stock down 14% in a single day.
Wall Street kind of piled onto the Sea Limited selling spree today, with three separate investment banks -- Bank of America, Citigroup, and Stifel Nicolaus -- all cutting their price targets on the stock. Adding insult to injury, Daiwa Securities cut its price target by $30, to $80, and also downgraded Sea Limited stock to "hold."
That's the bad news. The good news is that Daiwa's was the only downgrade Sea suffered today, and while BofA and Citi -- and Stifel as well -- did cut their price targets, according to ratings news reporter TheFly, each of these latter three investment banks still maintains a "buy" rating on Sea stock. As Bank of America noted, Sea's losses were worse than expected, but its revenues and gross profit margins at least beat expectations. And longer term, in this banker's view, Sea remains "well placed to dominate" e-commerce in Southeast Asia.
Source Fool.com
