"Rising" Unicorn from SG!-Sea
"Rising" Unicorn from SG! $Sea Ltd(SE)$
The once formidable Unicorn from SG has seen its share price dropped significantly since Dec 21. Sea's business includes gaming, e-commerce and fintech. Howver, the gaming segment (Garena) is the only profitable part of the business so far. In e-commerce, it is pursuing a loss-leading expansion into Latin America, challenging MercadoLibre. Furthermore, Sea's fintech platform is expanding rapidly -- but it's also racking up big losses as it evolves into a digital bank.
Although it was considered one of the hyper-growth stock with more than 100% growth in revenues yoy over the last 3 years. I'm skeptical about the rate that it's burning money!! 🔥 Despite the huge growth in revenue, it's also losing more and more money every quarter!! Is that sustainable?? It's a huge no-no for me!! Remember not to love your stock and cut-loss when necessary!!
Although I'm not vested in the stock, I do love its Shopee app as I get to purchase necessities at a huge discount with the vouchers! With more impending interest hikes, I wonder how much more money can they burn? It would be good if Sea focus more on their gaming business which is the cash cow instead of expanding their loss-making business (e-commerce and fintech). Go slow and steady. Do you agree with me? Let me know your thoughts!
@Daily_Discussion@CaptainTiger@TigerStars@MillionaireTiger@Tiger_chat
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