To The Moon

Hurray, $Sea Ltd(SE)$ just posted its first ever quarterly profit, as drastic cost-cutting undertaken by the gaming and e-commerce company to cope with the post-pandemic slowdown started to bear fruits. The company had expanded aggressively at the onset of the pandemic as it invested heavily to fend off competition and increase market share, often at the expense of profitability. While it had once been crowned the listed company with highest market capitalization on SGX, overtaking even the largest bank DBS in Southeast Asia, it has since fallen from grace as its share price took beatings as borders reopen and economies pivot to the new normal. Amidst calls from Wall Street to focus on profitability, SEA has exited from several unprofitable markets and made headlines when newly recruited staff were dismissed.

I'm still holding on to SEA shares I had bought at $150+ more than 2 years ago and was crazy enough not to have taken profit when its share price more than doubled during its heyday, so I'm now counting my loss.

Hopefully, Forrest Li will be able to renew sustainable growth and increase profitability for the company over time amidst rising geopolitical tensions, sticky inflation and stiffening competitions, so that the company may regain its past glory and reward long-term shareholders. Meanwhile, light seems to be beaconing at the end of the tunnel.

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