Profile - To The Moon

Timothylwong

Posts · 22Posts · 22
Following · 0Following · 0
Followers · 0Followers · 0

- TimothylwongTimothylwong
  ·2023-09-02
  Rubbish post. Shopee is so much more user friendly than Lazada. Lazada is a disaster. But just to have such a long article just to compare this part of the business to make a judgement is bad. You didn't talk about other aspect of the business. Very shallow article
  Sea Limited: Decline In Market Share Likely To Hurt The Stock
  The recent earnings result shows that Sea Limited has lost its growth momentum in order to improve profitability.Sea Limited is losing market share due to intense competition from Alibaba’s Lazada in
  Sea Limited: Decline In Market Share Likely To Hurt The Stock
  498 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-07-05
  $AABB is early July, payaabb.com launch anytimenow
  515 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-07-01
  $Plyz seems dead
  346 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-06-29
  Do we have to wait till next election before market returns
  392 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-06-28
  $AABB +33% still awaiting news. Hopefully ATH and maintain upward trend
  531 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-06-27
  $AABB start of a new week. Dividend announcement. Will there be more dilution or it's the start ofthe rise
  348 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-06-24
  $AABB dividend news next week
  604 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-06-23
  $AABB 50m restricted to unrestricted shares
  387 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-06-22
  $AABB launching their payaabb.com next month. Merchants can accept btc, eth etc soon!
  398 Comment
  Like
  Share
  Report
- TimothylwongTimothylwong
  ·2022-06-21
  $BN4 Keppel next month financial report and Aug dividend news?
  546 Comment
  Like
  Share
  Report
No following yet

Most Discussed

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"isCurrentUser":false,"userPageInfo":{"id":"3576739666683325","uuid":"3576739666683325","gmtCreate":1613647553543,"gmtModify":1613647553543,"name":"Timothylwong","pinyin":"timothylwong","introduction":"","introductionEn":"","signature":"","avatar":"https://static.laohu8.com/default-avatar.jpg","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":0,"headSize":5,"tweetSize":22,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":2,"name":"无畏虎","nameTw":"無畏虎","represent":"初生牛犊","factor":"发布3条非转发主帖,1条获得他人回复或点赞","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":0,"symbols":null,"coverImage":null,"realNameVerified":"success","userBadges":[{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.11.18","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.08.06","exceedPercentage":"80.25%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1101},{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.28","exceedPercentage":"80.14%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1102},{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100}],"userBadgeCount":5,"currentWearingBadge":null,"individualDisplayBadges":null,"crmLevel":2,"crmLevelSwitch":0,"location":null,"starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"page":1,"watchlist":null,"tweetList":[{"id":215316713971824,"gmtCreate":1693598272072,"gmtModify":1693606172773,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"Rubbish post. Shopee is so much more user friendly than Lazada. Lazada is a disaster. But just to have such a long article just to compare this part of the business to make a judgement is bad. You didn't talk about other aspect of the business. Very shallow article","listText":"Rubbish post. Shopee is so much more user friendly than Lazada. Lazada is a disaster. But just to have such a long article just to compare this part of the business to make a judgement is bad. You didn't talk about other aspect of the business. Very shallow article","text":"Rubbish post. Shopee is so much more user friendly than Lazada. Lazada is a disaster. But just to have such a long article just to compare this part of the business to make a judgement is bad. You didn't talk about other aspect of the business. Very shallow article","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/215316713971824","repostId":"2364219735","repostType":2,"repost":{"id":"2364219735","kind":"highlight","pubTimestamp":1693553400,"share":"https://ttm.financial/m/news/2364219735?lang=&edition=fundamental","pubTime":"2023-09-01 15:30","market":"us","language":"en","title":"Sea Limited: Decline In Market Share Likely To Hurt The Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2364219735","media":"seekingalpha","summary":"The recent earnings result shows that Sea Limited has lost its growth momentum in order to improve profitability.Sea Limited is losing market share due to intense competition from Alibaba’s Lazada in ","content":"<html><head></head><body><ul style=\"\"><li><p>The recent earnings result shows that Sea Limited has lost its growth momentum in order to improve profitability.</p></li><li><p>Sea Limited is losing market share due to intense competition from Alibaba’s Lazada in Southeast Asia.</p></li><li><p>Alibaba’s international commerce segment which includes Lazada reported 60% YoY revenue growth and significant improvement in EBITA margin.</p></li><li><p>It would be difficult for Sea Limited to deliver good growth with reasonable profit due to modest investments in first-party logistics.</p></li><li><p>We could see further correction in Sea Limited stock over the next few quarters as the company loses market share in key regions.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3546b4c4790cdb29d0d746aa3616f0b2\" tg-width=\"750\" tg-height=\"500\"/></p><p>Sea Limited (NYSE:SE) stock is down by 30% in the year-to-date despite a massive cost-cutting program which helped the company turn profitable in the last few quarters. Most of the Big Tech companies in the U.S. have also launched major reductions in headcount which helped improve their EPS and also led to a big tech rally in 2023. On the other hand, Sea Limited did not see any gains in the stock price due to a number of new challenges.</p><p>Sea Limited is facing competition from Alibaba&#39;s (BABA) Lazada in Southeast Asia. In the recent quarter, Sea Limited reported YoY revenue growth of 5% while Alibaba&#39;s International Commerce retail segment reported YoY revenue growth of 60%. Alibaba&#39;s International Commerce segment also reduced losses by 70% and is now close to being profitable. CNBC mentioned that Sea Limited&#39;s management is now trying to pivot back to growth while putting profitability as a lower priority.</p><p>This continuous back and forth between growth and profitability shows the dilemma facing Sea Limited. It is unlikely that Sea Limited will be able to deliver sustainable growth with healthy profits in the near term which will continue to put downward pressure on the stock. Despite the recent correction, it is better to use a wait-and-watch strategy with this stock.</p><p>Due to these challenges, the stock should have a Hold rating in my opinion. Sea Limited has been able to surprise Wall Street in the past by launching very popular games and services. If the management is able to another profitable segment in the next few quarters, we could see a strong bullish momentum in the stock.</p><h2 id=\"id_3660485309\">Losing market share</h2><p>The rapid growth of Sea Limited during the pandemic was funded by being a loss leader. The company invested heavily in attracting new customers with higher discounts and giving incentives to sellers. This inevitably led to massive losses in the company. As the tech boom ended in late 2021, Sea Limited&#39;s stock went into a massive bear phase and we have seen the stock decline by a staggering 90% since hitting the peak in 2021.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/16c99a52581ceac24c37dbdd53cd45ae\" tg-width=\"972\" tg-height=\"439\"/></p><p>Ycharts</p><p></p><p>Figure 1: Sea Limited&#39;s YoY revenue growth has fallen behind Alibaba.</p><p>Last year, Sea Limited started pursuing profitability by lowering incentives, hiking commission rates, and cutting headcount. This has helped the company become profitable but has caused a significant decline in market share. The e-commerce segment in Southeast Asia and other regions has been showing promising growth. According to recent earnings results, Alibaba&#39;s International Commerce retail segment has jumped by 60% on a YoY basis. A bulk of Alibaba&#39;s international retail revenue comes from Lazada which is in direct competition with Sea Limited.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/769666f7bde2531cfae7fc56b7814efe\" tg-width=\"640\" tg-height=\"98\"/></p><p>Company Filings</p><p></p><p>Figure 2: Increase in Alibaba&#39;s international retail revenue.</p><p>Alibaba is also injecting additional funds into Lazada. Recently, it has added $845 million which should give Lazada enough firepower to attract more customers and take market share away from Sea Limited.</p><h2 id=\"id_2672636179\">Return to massive losses</h2><p>Sea Limited&#39;s management has mentioned that they will start prioritizing revenue growth in the next few quarters. This will lead the company back to losses. One of the reasons why Wall Street has not turned bullish towards the stock despite recent profitability is the lack of sustainable long-term profitability. The only way Sea Limited can improve its revenue growth is by giving bigger incentives to sellers and customers.</p><p>Alibaba is looking to spinoff the company into six different businesses. One of these would be the international business vertical. It is important for Alibaba to show strong metrics in a key international region before spinning off the international business. We could see Alibaba prioritize growth in Lazada for the next few quarters by making higher investments in logistics and improving the market share. This will reduce the ability of Sea Limited to deliver strong revenue growth and it could eat away the small profitability which the company has recently reported.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/625eebb94c6ca0c274115d9c89fa4669\" tg-width=\"978\" tg-height=\"410\"/></p><p>Ycharts</p><p></p><p>Figure 3: Forward revenue and EPS estimates of Sea Limited.</p><p>The forward revenue estimates of Sea Limited are declining as the YoY revenue growth has reduced. As shown in the above image, the consensus EPS estimate for 2 fiscal years ahead is $3.20. Sea Limited&#39;s stock is trading at 12 times the EPS estimate for 2 fiscal years ahead. This seems a modest valuation multiple. However, we could see a substantial decrease in EPS and possibly a restart of big losses as the company tries to ramp up revenue growth and protect its market share.</p><p>Investors looking to make an entry at the current price should look at the possibility and scale of future losses in Sea Limited. A higher revenue base and intense competition will prevent Sea Limited from showing the YoY revenue growth it reported during the pandemic which helped the stock gain a massive bull run. At the same time, we could see a significant decline in margins in the near term.</p><h2 id=\"id_2653114293\">Upside potential for Sea Limited</h2><p>Despite the above-mentioned challenges, Sea Limited could still surprise with a stronger-than-expected earnings result in the next few quarters. This would require the company to increase the cost-cutting measures. It would also need to be very prudent in future incentives to attract customers and merchants. The management has mentioned that they would be prioritising revenue growth which is one of the reasons why it could be difficult to contain spiralling costs.</p><p>In the past few years, Sea Limited has been able to launch new services and games which were highly popular and profitable for the company. If the company launches another popular game like Free Fire, it could change the growth and EPS trajectory for the company giving the stock a strong bullish sentiment.</p><h2 id=\"id_3080090989\">Impact on Sea Limited stock</h2><p>The e-commerce business is to a large extent a winner-takes-all market. We have seen this in the U.S. as well as in other regions like China, India, and Europe. Sea Limited has spent massive resources on incentives, marketing, and trying to attract customers instead of building a first-party logistics network that can rival bigger players. A lack of a strong moat will hurt the company as most of the tailwind due to the pandemic has disappeared.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c33deb295388278bc82d4a3f6bc40e58\" tg-width=\"976\" tg-height=\"494\"/></p><p>Ycharts</p><p></p><p>Figure 4: High PE ratio of SE despite lower revenue growth.</p><p>Sea Limited&#39;s PE ratio is still quite high while the company is reporting single-digit YoY revenue growth. As mentioned above, it is highly likely that we will see a decline in margins or big losses from Sea Limited in the next few quarters as the company tries to reignite its revenue growth. It would be better for investors to wait and watch for another quarter or two before making an entry into this stock.</p><h2 id=\"id_66661972\">Investor takeaway</h2><p>Sea Limited reported 5% YoY revenue growth which was significantly lower than the 60% YoY revenue growth reported by Alibaba&#39;s International commerce retail business. Alibaba&#39;s Lazada is a major competitor for Sea Limited and Alibaba is injecting massive resources in order to improve the market share of Lazada.</p><p>Sea Limited&#39;s management is trying to restart revenue growth which could lead to a decline in margins and bigger losses. The revenue base of Sea Limited is quite large compared to the pre-pandemic period which will make it more difficult to report high YoY revenue growth. The forward EPS estimate seems quite unrealistic as the company is trying to ramp up revenue growth. I think there are a lot of risks with the current strategy of the management and any future headwind could cause further correction in the stock.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Limited: Decline In Market Share Likely To Hurt The Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Limited: Decline In Market Share Likely To Hurt The Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-09-01 15:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4632325-sea-limited-decline-market-share-hurt-the-stock><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The recent earnings result shows that Sea Limited has lost its growth momentum in order to improve profitability.Sea Limited is losing market share due to intense competition from Alibaba’s Lazada in ...</p>\n\n<a href=\"https://seekingalpha.com/article/4632325-sea-limited-decline-market-share-hurt-the-stock\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","BK4526":"热门中概股","SE":"Sea Ltd","BK4122":"互联网与直销零售","BK4551":"寇图资本持仓","LU0651946864.USD":"贝莱德新兴市场股票收益A2","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","BK4505":"高瓴资本持仓","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC","SG9999002406.SGD":"利安新加坡信托基金","LU1051768304.USD":"贝莱德新兴市场股票收益A6","BK4085":"互动家庭娱乐","SG9999002620.SGD":"LionGlobal South East Asia SGD","BK4504":"桥水持仓","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","LU1046422090.SGD":"Fidelity Pacific A-SGD","BK4548":"巴美列捷福持仓","SG9999001135.SGD":"United ASEAN Fund SGD","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","BK4565":"NFT概念","SG9999013478.USD":"利安新加坡股息基金","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","BK4554":"元宇宙及AR概念","SG9999002604.SGD":"LionGlobal Singapore/Malaysia SGD","BK4531":"中概回港概念","SG9999002679.SGD":"LionGlobal Singapore Balanced SGD","SG9999005177.SGD":"Legg Mason Martin Currie - Southeast Asia Trust A Acc SGD","BK4585":"ETF&股票定投概念","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4527":"明星科技股","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","BK4558":"双十一","BK4566":"资本集团","BK4538":"云计算","LU0251143029.SGD":"Fidelity ASEAN A-SGD","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","SG9999014492.USD":"NIKKO AM ASEAN EQUITY \"A\" (USD) ACC","LU0210637038.USD":"HSBC GIF THAI EQUITY \"AD\" INC","BK4220":"综合零售","BK4535":"淡马锡持仓","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","SG9999014484.SGD":"Nikko AM ASEAN Equity Fund A SGD","LU1688375341.USD":"贝莱德中国灵活股票基金"},"source_url":"https://seekingalpha.com/article/4632325-sea-limited-decline-market-share-hurt-the-stock","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2364219735","content_text":"The recent earnings result shows that Sea Limited has lost its growth momentum in order to improve profitability.Sea Limited is losing market share due to intense competition from Alibaba’s Lazada in Southeast Asia.Alibaba’s international commerce segment which includes Lazada reported 60% YoY revenue growth and significant improvement in EBITA margin.It would be difficult for Sea Limited to deliver good growth with reasonable profit due to modest investments in first-party logistics.We could see further correction in Sea Limited stock over the next few quarters as the company loses market share in key regions.Sea Limited (NYSE:SE) stock is down by 30% in the year-to-date despite a massive cost-cutting program which helped the company turn profitable in the last few quarters. Most of the Big Tech companies in the U.S. have also launched major reductions in headcount which helped improve their EPS and also led to a big tech rally in 2023. On the other hand, Sea Limited did not see any gains in the stock price due to a number of new challenges.Sea Limited is facing competition from Alibaba's (BABA) Lazada in Southeast Asia. In the recent quarter, Sea Limited reported YoY revenue growth of 5% while Alibaba's International Commerce retail segment reported YoY revenue growth of 60%. Alibaba's International Commerce segment also reduced losses by 70% and is now close to being profitable. CNBC mentioned that Sea Limited's management is now trying to pivot back to growth while putting profitability as a lower priority.This continuous back and forth between growth and profitability shows the dilemma facing Sea Limited. It is unlikely that Sea Limited will be able to deliver sustainable growth with healthy profits in the near term which will continue to put downward pressure on the stock. Despite the recent correction, it is better to use a wait-and-watch strategy with this stock.Due to these challenges, the stock should have a Hold rating in my opinion. Sea Limited has been able to surprise Wall Street in the past by launching very popular games and services. If the management is able to another profitable segment in the next few quarters, we could see a strong bullish momentum in the stock.Losing market shareThe rapid growth of Sea Limited during the pandemic was funded by being a loss leader. The company invested heavily in attracting new customers with higher discounts and giving incentives to sellers. This inevitably led to massive losses in the company. As the tech boom ended in late 2021, Sea Limited's stock went into a massive bear phase and we have seen the stock decline by a staggering 90% since hitting the peak in 2021.YchartsFigure 1: Sea Limited's YoY revenue growth has fallen behind Alibaba.Last year, Sea Limited started pursuing profitability by lowering incentives, hiking commission rates, and cutting headcount. This has helped the company become profitable but has caused a significant decline in market share. The e-commerce segment in Southeast Asia and other regions has been showing promising growth. According to recent earnings results, Alibaba's International Commerce retail segment has jumped by 60% on a YoY basis. A bulk of Alibaba's international retail revenue comes from Lazada which is in direct competition with Sea Limited.Company FilingsFigure 2: Increase in Alibaba's international retail revenue.Alibaba is also injecting additional funds into Lazada. Recently, it has added $845 million which should give Lazada enough firepower to attract more customers and take market share away from Sea Limited.Return to massive lossesSea Limited's management has mentioned that they will start prioritizing revenue growth in the next few quarters. This will lead the company back to losses. One of the reasons why Wall Street has not turned bullish towards the stock despite recent profitability is the lack of sustainable long-term profitability. The only way Sea Limited can improve its revenue growth is by giving bigger incentives to sellers and customers.Alibaba is looking to spinoff the company into six different businesses. One of these would be the international business vertical. It is important for Alibaba to show strong metrics in a key international region before spinning off the international business. We could see Alibaba prioritize growth in Lazada for the next few quarters by making higher investments in logistics and improving the market share. This will reduce the ability of Sea Limited to deliver strong revenue growth and it could eat away the small profitability which the company has recently reported.YchartsFigure 3: Forward revenue and EPS estimates of Sea Limited.The forward revenue estimates of Sea Limited are declining as the YoY revenue growth has reduced. As shown in the above image, the consensus EPS estimate for 2 fiscal years ahead is $3.20. Sea Limited's stock is trading at 12 times the EPS estimate for 2 fiscal years ahead. This seems a modest valuation multiple. However, we could see a substantial decrease in EPS and possibly a restart of big losses as the company tries to ramp up revenue growth and protect its market share.Investors looking to make an entry at the current price should look at the possibility and scale of future losses in Sea Limited. A higher revenue base and intense competition will prevent Sea Limited from showing the YoY revenue growth it reported during the pandemic which helped the stock gain a massive bull run. At the same time, we could see a significant decline in margins in the near term.Upside potential for Sea LimitedDespite the above-mentioned challenges, Sea Limited could still surprise with a stronger-than-expected earnings result in the next few quarters. This would require the company to increase the cost-cutting measures. It would also need to be very prudent in future incentives to attract customers and merchants. The management has mentioned that they would be prioritising revenue growth which is one of the reasons why it could be difficult to contain spiralling costs.In the past few years, Sea Limited has been able to launch new services and games which were highly popular and profitable for the company. If the company launches another popular game like Free Fire, it could change the growth and EPS trajectory for the company giving the stock a strong bullish sentiment.Impact on Sea Limited stockThe e-commerce business is to a large extent a winner-takes-all market. We have seen this in the U.S. as well as in other regions like China, India, and Europe. Sea Limited has spent massive resources on incentives, marketing, and trying to attract customers instead of building a first-party logistics network that can rival bigger players. A lack of a strong moat will hurt the company as most of the tailwind due to the pandemic has disappeared.YchartsFigure 4: High PE ratio of SE despite lower revenue growth.Sea Limited's PE ratio is still quite high while the company is reporting single-digit YoY revenue growth. As mentioned above, it is highly likely that we will see a decline in margins or big losses from Sea Limited in the next few quarters as the company tries to reignite its revenue growth. It would be better for investors to wait and watch for another quarter or two before making an entry into this stock.Investor takeawaySea Limited reported 5% YoY revenue growth which was significantly lower than the 60% YoY revenue growth reported by Alibaba's International commerce retail business. Alibaba's Lazada is a major competitor for Sea Limited and Alibaba is injecting massive resources in order to improve the market share of Lazada.Sea Limited's management is trying to restart revenue growth which could lead to a decline in margins and bigger losses. The revenue base of Sea Limited is quite large compared to the pre-pandemic period which will make it more difficult to report high YoY revenue growth. The forward EPS estimate seems quite unrealistic as the company is trying to ramp up revenue growth. I think there are a lot of risks with the current strategy of the management and any future headwind could cause further correction in the stock.","news_type":1},"isVote":1,"tweetType":1,"viewCount":498,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9070357326,"gmtCreate":1657021629465,"gmtModify":1676535932964,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"$AABB is early July, payaabb.com launch anytimenow","listText":"$AABB is early July, payaabb.com launch anytimenow","text":"$AABB is early July, payaabb.com launch anytimenow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9070357326","isVote":1,"tweetType":1,"viewCount":515,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9045233067,"gmtCreate":1656628618759,"gmtModify":1676535864219,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"$Plyz seems dead","listText":"$Plyz seems dead","text":"$Plyz seems dead","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9045233067","isVote":1,"tweetType":1,"viewCount":346,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9042256679,"gmtCreate":1656485689591,"gmtModify":1676535839011,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"Do we have to wait till next election before market returns","listText":"Do we have to wait till next election before market returns","text":"Do we have to wait till next election before market returns","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9042256679","isVote":1,"tweetType":1,"viewCount":392,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9042083203,"gmtCreate":1656403292502,"gmtModify":1676535822093,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"$AABB +33% still awaiting news. Hopefully ATH and maintain upward trend","listText":"$AABB +33% still awaiting news. Hopefully ATH and maintain upward trend","text":"$AABB +33% still awaiting news. Hopefully ATH and maintain upward trend","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9042083203","isVote":1,"tweetType":1,"viewCount":531,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9046152886,"gmtCreate":1656316967845,"gmtModify":1676535805070,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"$AABB start of a new week. Dividend announcement. Will there be more dilution or it's the start ofthe rise","listText":"$AABB start of a new week. Dividend announcement. Will there be more dilution or it's the start ofthe rise","text":"$AABB start of a new week. Dividend announcement. Will there be more dilution or it's the start ofthe rise","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9046152886","isVote":1,"tweetType":1,"viewCount":348,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9041269967,"gmtCreate":1656057733759,"gmtModify":1676535760434,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"$AABB dividend news next week","listText":"$AABB dividend news next week","text":"$AABB dividend news next week","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9041269967","isVote":1,"tweetType":1,"viewCount":604,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9041062786,"gmtCreate":1655983030645,"gmtModify":1676535744771,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"$AABB 50m restricted to unrestricted shares","listText":"$AABB 50m restricted to unrestricted shares","text":"$AABB 50m restricted to unrestricted shares","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9041062786","isVote":1,"tweetType":1,"viewCount":387,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9043963867,"gmtCreate":1655861957659,"gmtModify":1676535720863,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"$AABB launching their payaabb.com next month. Merchants can accept btc, eth etc soon!","listText":"$AABB launching their payaabb.com next month. Merchants can accept btc, eth etc soon!","text":"$AABB launching their payaabb.com next month. Merchants can accept btc, eth etc soon!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9043963867","isVote":1,"tweetType":1,"viewCount":398,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9049941561,"gmtCreate":1655741202753,"gmtModify":1676535696005,"author":{"id":"3576739666683325","authorId":"3576739666683325","name":"Timothylwong","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3576739666683325","authorIdStr":"3576739666683325"},"themes":[],"htmlText":"$BN4 Keppel next month financial report and Aug dividend news?","listText":"$BN4 Keppel next month financial report and Aug dividend news?","text":"$BN4 Keppel next month financial report and Aug dividend news?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9049941561","isVote":1,"tweetType":1,"viewCount":546,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"defaultTab":"following","isTTM":true}