I live in SE Asia and I want to share a couple of observations regarding SE. The first is that even before the pandemic forced us all into our homes for months, Shopee was part of our daily lives if we need ANYTHING for our home or daily lives. Secondly, somewhat unlike the West, the internet and wifi and mobile device use is pervasive here; I mean you CANT get away from it if you tried. I was on the Lao border up in the rural mountains some years back and had high speed mobile internet EVERYWHERE. Third, many countries in SE Asia (I live in Vietnam) have simply skipped the copper land line build-out and opted for the next, latest, fastest generation of wireless internet and it is made available to all and VERY inexpensively. Fourth, the middle class in this part of the world (unlike in the West) is expanding like mad; people in cities are moving rapidly up the socio-economic ladder, incomes are increasing and people are buying both big ticket items - homes and cars - and everything to fill those up. Fifth, gaming is insanely popular and has been for a long time. Six - since the mobile phone is now the go to device for EVERYTHING, there is no obstacle to using it to pay for things too. All of these things play right into the sweet spot for SE in all of the markets they are both in already and just entering and while they are paying up for market share (advertising and investments), they are also owning the space. This wont change. The Shopee brand is practically a verb here in the same way you ask for a Kleenex or a Band Aid; the brand becomes the object itself. What do you pay for that recognition? We will find out in the coming decade. I'm all in today at $300.
a
This may be a little rough for awhile. The market, as usual, is overreacting. Time to dollar cost average in. Good luck everyone.
S
Good support at $387. If it holds, super-bullish.
A
All growth stocks across the board the past 2 weeks, mostly are down 15-25%. Not just SE. $AFRM $TDOC $ZM $LC $NET $ASAN
g
Today I called in to Jim Cramer’s Mad Money to discuss the dislocation between the company’s superb triple digit expansion of all financial metrics, notwithstanding the increase in the EPS loss that exceeded the analysts’ estimates of what is acceptable for a company to incur when establishing a market, and the markets reaction - a 10+% drop. Jim Cramer reviewed the conference call, said the corporation is performing superbly, it is a winner, said essentially this is how market psychology plays out, and to buy more. Years ago I missed the opportunity to buy AMZN, or any stock, because I couldn’t afford to invest, but I followed its growth and memorized its own playbook. AMZN lost money for a very long time as it relentlessly pursued its goal. The conference call was convincing, I suggest reading the transcript, look at their balance sheet and financials, the analysts reactions, and projecting the likelihood of SE reaching its goal of dominance in Southeast Asia in e-commerce and digital finance. I don’t want to miss this chance. I’m buying more tomorrow. And thank you Jim Cramer.
K
B of A downgrades but raises their price target to 385$. B of S.
Citigroup buy - 416$PT
N
Just added some shares to my longterm holding, buying opportunity!
Z
UBS analyst Navin Killa raised the price target to $380 from $350, implying a 22% upside, and maintained a Buy.
The analyst cites the company's "strong" Q3 results, particularly in the e-commerce segment, where gross merchandise value and revenue were up 81% and 134%, respectively.
Spending on sales and marketing remains elevated, and the gaming segment saw a slowdown.
Still, Sea Ltd should continue to benefit from adopting e-commerce and digital finance across under-penetrated regions in ASEAN and LatAm regions.
The rating contrasts with BofA analyst Sachin Salgaonkar downgraded to Neutral from Buy with a price target of $385, up from $380, implying a 23% upside.
Salgaonkar considers the risk/reward as balanced following the stock's 67% rise year-to-date.
The analyst added that the company's gaming guidance following its Q3 earnings results implied slowing Q4 growth.
Citi analyst Alicia Yap lowered the price target to $416 from $424, implying a 33% upside, and affirmed a Buy following the "solid" Q3 results.
Gaming user metrics started to resemble a normalized steady growth trend in a post-Covid environment. The analyst believes Sea's growth momentum and monetization upside for Shopee remain intact.
S
Cathie Wood started buying again!
30,000 shares added to ARKF
J
FFS...I bought yesterday on the dip. I should have waited...Ugh!
M
We could get some shopify buyers as they downgraded it today to hold on valuation. Plus this is cheap IMO.
g
As of August of this year, I read that Tiger Global has SE as it’s 8th largest holding. They are a significant growth investor.
J
SE expected to grow 135% next year. How many companies can do that? Future PE is only 13. Is cheap for a growth stock.
Z
On the way to $400
a
Same thing happened during the last earnings report. The SP dropped significantly and the increased significantly during the next several weeks. We’ll see.
A
My Intrinsic Value calculator based on discounted cash flow has this stock valued at 55$. It has just sliced through the 200MA support, next support near 195$.
C
Nobody cares about earnings for a high-growth company. Revenues are a beat and guidance is up, and that's all that matter for now. All aboard!
H
buy the rumour and sell the news! that is what is happening here. Buyers will return before closing. Watch this space.
Z
How does SE deserve such dip? Earnings was fantastic
S
This ER is fantastic. I don’t expect SE to profit yet as they still spend on research and marketing. The growth in revenue has been fantastic and in long run, SE will turn profitable. Plus, it doesn’t have CCP risk either as it’s in Singapore.
The first is that even before the pandemic forced us all into our homes for months, Shopee was part of our daily lives if we need ANYTHING for our home or daily lives.
Secondly, somewhat unlike the West, the internet and wifi and mobile device use is pervasive here; I mean you CANT get away from it if you tried. I was on the Lao border up in the rural mountains some years back and had high speed mobile internet EVERYWHERE.
Third, many countries in SE Asia (I live in Vietnam) have simply skipped the copper land line build-out and opted for the next, latest, fastest generation of wireless internet and it is made available to all and VERY inexpensively.
Fourth, the middle class in this part of the world (unlike in the West) is expanding like mad; people in cities are moving rapidly up the socio-economic ladder, incomes are increasing and people are buying both big ticket items - homes and cars - and everything to fill those up.
Fifth, gaming is insanely popular and has been for a long time.
Six - since the mobile phone is now the go to device for EVERYTHING, there is no obstacle to using it to pay for things too.
All of these things play right into the sweet spot for SE in all of the markets they are both in already and just entering and while they are paying up for market share (advertising and investments), they are also owning the space. This wont change. The Shopee brand is practically a verb here in the same way you ask for a Kleenex or a Band Aid; the brand becomes the object itself. What do you pay for that recognition? We will find out in the coming decade.
I'm all in today at $300.
Jim Cramer reviewed the conference call, said the corporation is performing superbly, it is a winner, said essentially this is how market psychology plays out, and to buy more.
Years ago I missed the opportunity to buy AMZN, or any stock, because I couldn’t afford to invest, but I followed its growth and memorized its own playbook. AMZN lost money for a very long time as it relentlessly pursued its goal.
The conference call was convincing, I suggest reading the transcript, look at their balance sheet and financials, the analysts reactions, and projecting the likelihood of SE reaching its goal of dominance in Southeast Asia in e-commerce and digital finance.
I don’t want to miss this chance. I’m buying more tomorrow. And thank you Jim Cramer.
Citigroup buy - 416$PT
The analyst cites the company's "strong" Q3 results, particularly in the e-commerce segment, where gross merchandise value and revenue were up 81% and 134%, respectively.
Spending on sales and marketing remains elevated, and the gaming segment saw a slowdown.
Still, Sea Ltd should continue to benefit from adopting e-commerce and digital finance across under-penetrated regions in ASEAN and LatAm regions.
The rating contrasts with BofA analyst Sachin Salgaonkar downgraded to Neutral from Buy with a price target of $385, up from $380, implying a 23% upside.
Salgaonkar considers the risk/reward as balanced following the stock's 67% rise year-to-date.
The analyst added that the company's gaming guidance following its Q3 earnings results implied slowing Q4 growth.
Citi analyst Alicia Yap lowered the price target to $416 from $424, implying a 33% upside, and affirmed a Buy following the "solid" Q3 results.
Gaming user metrics started to resemble a normalized steady growth trend in a post-Covid environment.
The analyst believes Sea's growth momentum and monetization upside for Shopee remain intact.
30,000 shares added to ARKF