Key Points
- Investors are pouring back into Sea Limited's stock today after a big sell-off yesterday.
What happened
Shares of Sea Limited(NYSE:SE), a digital entertainment and e-commerce company, were rebounding today after the company's stock fell off a cliff yesterday. Some investors may consider yesterday's massive sell-off a good buying opportunity today.
The tech stock jumped 15.8% as of closed.
So what
Some investors sold their Sea Limited positions yesterday after news reports said that India was banning a list of apps, including Sea Limited's most popular video game,Free Fire.
IMAGE SOURCE: GETTY IMAGES.
The news sent Sea Limited's stock tumbling more than 18% yesterday.
But investors appear to be warming back up to the company today. Sometimes when a stock crashes hard one day other investors subsequently rush in to snatch up shares that they believe are now trading at a discounted price.
In fact, Cathie Wood's Ark Investment Management bought 145,000 shares of Sea Limited yesterday as the stock was falling.
Now what
Sea Limited is a fast-growing tech company, with sales skyrocketing 121% in the most recent quarter. It's unclear how the app's ban will affect those sales or whether the company can fix officials' concerns in India to reinstate the app.
What long-term investors should be aware of is that Sea Limited's stock is pretty volatile right now. Over the past six months, the stock has plummeted 54%.
This doesn't mean Sea Limited won't be a good investment over the long term, but the past few days show that if you're going to own shares of the company you might want to prepare for a bumpy ride.