To The Moon

Why did Sea Limited shares fall 9% Wednesday? No recovery in sight for digital gamer

Sea Limited (NYSE:‌$Sea Ltd(SE)$‌) saw its shares fall almost 9%, Thursday, as the Singapore-based developer of digital entertainment and gaming platforms showed few signs of recovering from a slide that has shaved almost one-third off its market value this month.

Since April 4, Sea Limited (SE) shares have fallen more than 31%. The company has faced a number of challenges through the first three months of 2022, including pulling the plug on its e-commerce company, Shopee, in India and France. China's Tencent Holdings (OTCPK:TCEHY) also pared back its ownership stake in Sea Limited (SE), and the company's popular Free Fire mobile game was banned in India.

Sea Limited (SE) was joined in the red with losses from Chinese Internet leaders such as Alibaba (BABA), which fell almost 4%; Baidu (BIDU), down more than 5% on the day and Tencent (OTCPK:TCEHY), which ended the day with a loss of more than 5%.

There was a lot of guilt-by-association with Thursday's losses, as much of the Asian Internet sector was down along with Didi Global (DIDI), which fell more than 9% on reports that Chinese regulators might impose stricter penalties upon of the ride-sharing leader related to its 2021 IPO.

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#pullback