$Sea Ltd(SE)$
SEA's recent plunge in stock prices has been attributed to the surprise losses that it has posted after 3 quarters of profits. Investors who were hoping to see a fourth quarter of profits, thereby securing a full year of profitability, were disappointed and thereby sold the stock.
However, one must not forget that $Sea Ltd(SE)$ is a tech stock. Although profits are good, for such companies, profitability often takes a back seat to prioritizing user acquisition, geographic expansion, and innovative product development. Therefore, assessing SEA's potential demands a forward-looking lens that considers the strategic value of current losses in the context of future gains. In this case, I see the willingness and ability of $Sea Ltd(SE)$ to pivot back to a growth mindset in a setting which calls for it a hallmark of it's adaptability in the current markets, further enhancing my bullish thesis towards this company's outlook.
Entrants of new companies, such as Bytedance TikTok shop, might also be another reason as to why $Sea Ltd(SE)$ has to pivot back towards a growth mentality, to secure it's position in the e-commerce sector. Humans are creatures of habit-the moment we get used, get comfortable with a particular behaviour, we tend not to explore outside the realms of it, unless the alternative leads to significant benefits. In this case, as SEA roots itself as the kingpin of e-commerce, it is vital that competition is fended off, and that it maintains its growth in user base.
Ultimately, $Sea Ltd(SE)$ recent losses, I must admit, is disappointing. However, one must not forget the long term benefits that SEA is securing in exchange for the short term losses. Selling puts might be a potential strategy to consider for SEA stock, especially if the current price of SEA is not yet at a comfortable buy price, which would allow one to profit from the premiums while potentially purchasing SEA at the price you might be comfortable with. A small laddering stake can also be considered when venturing into new volatile growth stocks.
Comments
we must remember that growth is a priority for tech stocks like them. Looking forward to a strong bounce back!
I'm holding on to my shares and seeing this through!
Excited to see what they'll come back with!