Sea Slipped 1% in Premarket Trading after Soaring Over 11% on Monday
Sea slipped 1% in premarket trading after soaring over 11% on Monday.
Shares of Asian tech company $Sea Limited(SE)$ surged on Monday after new revelations regarding major competitor TikTok. In Indonesia, TikTok Shop is quickly taking over the e-commerce market. But as early as tomorrow, Indonesia may release regulations that would make it harder for a social media platform like TikTok to integrate e-commerce capabilities.
Sea has three major parts of its business, one of which is e-commerce with its Shopee platform. If growth for TikTok Shop is suddenly hampered by stricter regulations, it would be good for Shopee, in theory. And that's why Sea stock was up 11.79% on Monday.
Sea stock is down 90% from its all-time high, and expectations for the company are low right now. These low expectations are partially fueled by fears regarding competition like TikTok. Maybe expectations can now bounce back if Indonesia changes the rules of the game. Sea is still growing and profitable, which could mean that it's in a good position to bounce back as the business executes.
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