In today’s briefing:
- Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
- Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea’s shares rose by 33% compared to the broader market’s 8.3%.
- With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
- Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.
Before it’s here, it’s on Smartkarma