Why Sea Limited Plunged Today
Shares of Southeast Asian "super-app" Sea Limited (NYSE: SE) fell as much as 26.8% on Tuesday, before recovering to a 16.4% decline by the end of trading.
Sea reported fourth-quarter earnings today that beat both revenue and earnings expectations; however, a rise in certain costs related to its fintech arm Monee appears to have investors nervous. Furthermore, its high-profit Garena gaming division saw a quarter-over-quarter decline in bookings, even as bookings were up strongly year over year.
All in all, these were imperfections in an otherwise strong earnings report, which may open up an opportunity in this market leader, given that Sea's stock has been more than cut in half from its 52-week high.
Source Fool.com
