Why Sea Limited Stock Sank Like a Rock Today
Shares of video game, e-commerce, and financial technology company Sea Limited (NYSE: SE) sank like a rock on Tuesday morning after the company reported its results for the first quarter of 2023. As of 2:27 p.m. ET, Sea Limited stock was down by about 19%.
For Q1, Sea Limited reported revenue of $3 billion, which was up just 5% year over year. However, this was basically what Wall Street expected, and the company still showed areas of incredible strength. At one time, its video game unit was its largest, but revenue from that segment was cut in half year over year in Q1. By contrast, its e-commerce revenue surged by 50.7%.
On the bottom line, Sea Limited fell short of expectations, which is likely why investors bid the stock lower Tuesday. Its net income of $87 million worked out to $0.15 per diluted share. Analysts' consensus expectation had been for earnings of $0.39 per share.
Source Fool.com
