Is Sea Limited (SE) a buy after Q2 2023 result? What is the fair value? Sea Limited (SE) is a leading global consumer internet company, founded in Singapore. It operates three core businesses across digital entertainment, e-commerce, and digital financial services. In the second quarter of 2023, Sea Limited reported mixed results. Revenues grew 23% year-over-year to $3.6 billion, but adjusted EBITDA loss widened to $567 million. The company's digital entertainment business, Garena, continued to grow, with revenues up 31% year-over-year. However, the e-commerce business, Shopee, saw its growth slow, with revenues up 16% year-over-year. The slowdown in Shopee's growth was due to a number of factors, including increased competition from rivals like Alibaba and JD.com, as well as the ong
I have been following Grab for some time. I believe that Grab has the potential to be profitable in 2023, but there are a number of factors that could affect its ability to achieve this goal. On the positive side, Grab has been growing its revenue rapidly in recent quarters. In the first quarter of 2023, revenue grew 130% year-over-year to $525 million. This growth was driven by strong demand for Grab's mobility and deliveries services. Grab has also been taking steps to reduce its costs. In the first quarter of 2023, the company's adjusted EBITDA loss narrowed by 64% year-over-year to $391 million. This was due to a number of factors, including lower marketing and promotional expenses, and a reduction in driver incentives. However, there are also some challenges that Grab faces. One chall
Taiwan Semiconductor Manufacturing Company (TSM) is the world's largest contract chipmaker. The company provides manufacturing services to a wide range of customers, including Apple, Qualcomm, and Nvidia. TSM has been a solid performer over the long term. The company's stock price has increased by more than 500% in the past five years. However, I am inclined to have a negative view on TSM stock in the long run. Here are some of the reasons why: * **The global semiconductor market is facing increasing competition.** TSM is not the only company that manufactures semiconductors. There are a number of other companies, such as Samsung and Intel, that are also competing for market share. * **The cost of manufacturing semiconductors is rising.** The cost of raw materials, such as silicon, is risi
July 26, 2023, Volkswagen AG announced that it would invest $700 million in Xpeng Inc., a Chinese electric vehicle (EV) maker. Volkswagen will also jointly develop EV models with Xpeng in China. The news was met with positive reaction by investors, and Xpeng's stock price rose by more than 10% in the following days. **The Analysis** The investment from Volkswagen is a significant vote of confidence in Xpeng. It shows that Volkswagen sees Xpeng as a leading player in the Chinese EV market, and it is willing to partner with the company to develop new EV models. The joint development of EV models with Volkswagen will give Xpeng access to Volkswagen's engineering and manufacturing expertise. This could help Xpeng to improve the quality of its EV models and to reduce its production costs. The i
Sea Limited (SE) is a Singapore-based technology company with a presence in gaming, e-commerce, and digital payments. The company has been on a tear in recent years, and its stock price has more than doubled since the beginning of 2021. As of July 27, 2023, Sea Limited is trading at $60 per share. Is it a buy at this price? **The Pros** There are a number of reasons why Sea Limited could be a good investment at $60 per share. First, the company is well-positioned to benefit from the growth of the digital economy in Southeast Asia. The region is home to a large and growing population of internet users, and Sea Limited has a leading position in a number of key markets. Second, Sea Limited has a strong track record of growth. In the past year, the company's revenue has grown by 150%. This gro