Is Sea Limited on Course, or Set to Sink?
Over the past few years, many growth companies saw their share prices skyrocket on the premise that triple-digit revenue growth could mask profit losses and cash burn. Sea Limited (NYSE: SE) is one such company. Over the past three years, Sea's share price jumped from $38 to $366 and then fall back down to $78, where the stock trades as of this writing.
In this new higher interest rate environment, the market is less tolerant of companies that can't improve on the bottom line, and in its most recently reported quarter, there's evidence that Sea has gotten the memo. The question for investors is if this good news this quarter was the beginning of a trend or merely a blip on the radar. Let's take a closer look.
When Sea limited reported results on March 7, the market reaction was immediate and decisive. Shares jumped in pre-market trading and the stock closed the day up nearly 22%. A quick glance at the headline numbers explains the stock pop.
Source Fool.com
