$Sea Ltd(SE)$
Here is an alternative bearish viewpoint.
Shopee is unlikely to continue its dominance without a significant driver of growth. Tiktok has its strong social media influence and presence to direct consumers to tiktok shop and drive sales there.
Shopee will have to resort to expensive marketing campaigns to stay in the mindshare of the consumer and dangle discounts to drive sales growth. This will be a drag on costs, and it is unlikely we will see a net profit in the near future.
As companies cut headcount to be leaner, it remains to be seen whether Sea can operate with efficiency.
I am a user of Shopee but will never invest with Sea.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments
Aweoswm