Why Sea Limited Stock Slid 12.6% This Week
Shares of Sea Limited (NYSE: SE) sank 12.6% this week, according to data from S&P Global Market Intelligence. The southeast Asian technology giant, which has exposure to the mobile gaming, e-commerce, and financial technology industries, saw investors sell off its stock after the U.S. reported high inflation for the month of June and a poor mobile games report released by Sensor Tower. As of this writing, shares of Sea Limited are down 70% year to date (YTD).
Inflation in the United States came in hotter than expected in June, at a 9.1% year-over-year growth rate. With inflation running so rampant, it is likely the Federal Reserve will need to continue to raise interest rates more aggressively. When this happens, stocks generally go down because investors can get higher yields from safer financial instruments like treasury bonds. Market participants generally seem to be banking on this happening right now, which likely caused them to sell off their shares of Sea Limited.
What's more, Sensor Tower released a report on the mobile gaming industry for the first half of 2022. Through its Garena division and its Free Fire game, Sea Limited has a lot of exposure to this market. In the first half of 2022, Sensor Tower estimates that spending on mobile gaming declined 6.6% year over year to $41.2 billion.
Source Fool.com
