Why Sea Limited Stock Soared Today
Shares of Sea Limited (NYSE: SE) soared Wednesday by as much as 10% as stay-at-home tech stocks continue to experience heightened volatility following news earlier this week that pharmaceutical companies are making progress on their COVID-19 vaccine candidates. As of 1:25 p.m. EST, the stock was up 7%.
E-commerce companies have enjoyed strong demand throughout the pandemic as consumers shifted to purchasing online from the safety of their homes. The prospect of an effective vaccine, while clearly good news in the broader battle against COVID-19, may dampen that engagement once people return to shopping at brick-and-mortar retail stores. The stock has been under heavy selling pressure over the past two days, but investors may be overreacting. Sea also has a mobile gaming business that has benefited from higher demand and engagement as people also need home entertainment during the pandemic.
Image source: Sea Limited.
Source Fool.com
