Why Sea Limited Stock Surged Today
Shares of Asian tech company Sea Limited (NYSE: SE) surged on Monday after new revelations regarding major competitor TikTok. In Indonesia, TikTok Shop is quickly taking over the e-commerce market. But as early as tomorrow, Indonesia may release regulations that would make it harder for a social media platform like TikTok to integrate e-commerce capabilities.
Sea has three major parts of its business, one of which is e-commerce with its Shopee platform. If growth for TikTok Shop is suddenly hampered by stricter regulations, it would be good for Shopee, in theory. And that's why Sea stock was up 12% as of 11 a.m. ET.
Roughly two-thirds of Sea's revenue for the second quarter of 2023 came from its e-commerce segment. Therefore, this is clearly a huge part of the business. Getting a boost here from weakened competition in Indonesia could be a big deal.
Source Fool.com
