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Why Sea Limited Stock Bounced Back Tuesday

Motley Fool2022-02-16

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.

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.

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Comment36

  • JLKang
    ·2022-02-17
    Bumpy indeed 
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  • GimaGO
    ·2022-02-17
    Choppy seas
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  • YBK
    ·2022-02-16
    [Happy] [Happy] 
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  • Hkh
    ·2022-02-16
    Great
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    • adonis123
      cha cha cha again
      2022-02-16
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  • Hkh
    ·2022-02-16
    Ok
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  • romanc9
    ·2022-02-16
    Can buy only if its lower at 120
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  • Agni
    ·2022-02-16
    🌊
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    • Agni
      🌊
      2022-02-16
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  • Anh
    ·2022-02-16
    I'm pinning my hopes on their expansion in South America 🇧🇷🇦🇷
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  • 要拼才会赢哥
    ·2022-02-16
    Patience is the key, period😃
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  • th0mastan
    ·2022-02-16
    Nothing has significantly changed for $Sea Ltd(SE)$except the India ban which was over-reacted IMO. It is still a growth stocks hence the volatility, while the business are still actively growing capturing new markets it’s a good time to slowly accumulate during thedip. No one knows how long this correction will last averaging over time would be a good option
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  • JackOATrades
    ·2022-02-16
    Cheating my feeligs
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  • Smelly Tiger
    ·2022-02-16
    SE 🚀🚀🚀
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    • Smelly Tiger
      🚀
      2022-02-18
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    • DJBoy
      Hopefully
      2022-02-16
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  • HENRYCSC
    ·2022-02-16
    Hooray 
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  • ThaigerB
    ·2022-02-16
    Gogogo.... 👍
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  • QArmieeQ
    ·2022-02-16
    Volatile is opportunity
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  • SilentWarrio
    ·2022-02-16
    Very bumpy indeed
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    • IAS
      Yes
      2022-02-16
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  • time to eat
    ·2022-02-16
    Just buy
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  • Desmond669
    ·2022-02-16
    Good 
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  • Jerryc_hi
    ·2022-02-16
    gogo
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  • mster
    ·2022-02-16
    seems like the small techs that have tumbled is comingback up while the big blue chip techs are crawling back very slowly thus $SPDR S&P 500 ETF Trust(SPY)$is barley moving even though the market was bullish the pass 2 days. 
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    • quixy
      The Federal Reserve has not officially raised interest rates. I believe that the fluctuation of the US stock market will be bigger and bigger. In other words, a sharp rise and fall will become the norm.
      2022-02-16
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    • zippiee
      The rebound after the beginning of the decline, don't rush to buy.
      2022-02-16
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    • glintzi
      It feels like the US stock market is like a roller coaster.
      2022-02-16
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