One of today’s big movers in the market is Sea Limited (NYSE:SE). However, unfortunately for investors, that’s because SE stock has plunged more than 12% after reporting earnings earlier today.
This earnings report was mixed. Sea Limited beat on the top line, but missed earnings expectations, driving much of today’s downside pressure. The digital entertainment company’s loss amounted to 88 cents per share, relative to analyst expectations of a 59 cent per share loss. This higher-than-expected loss on better-than-expected revenue has some investors concerned about the company’s margins.
Additionally, Sea Limited noted that its user growth and user engagement numbers have moderated. There are key factors investors watch closely and the language in the company’s press release was not bullish in this regard. What’s more, the company’s provided outlook missed the mark for many investors.
This earnings report is on top of news released last week that India had banned one of Sea Limited’s games, “Free Fire.” This ban is reportedly one of 54 apps that India has targeted as potential couriers of data to servers in China. The dispute appears to be ongoing right now.
With all this in mind, let’s dive into what the experts think of Sea Limited and SE stock.
Where Do the Analysts Think SE Stock Is Headed?
For reference, SE stock currently trades at around $126 per share at the time of this writing.
- John Blackledge of Cowen reduced his price target for SE stock to $295 per share, with a buy rating.
- JPMorgan analyst Ranjan Sharma also has a buy rating on Sea Limited, with a $250 price target.
- Finally, Goldman Sachs analyst Piyush Mubayi rounds out the recent analyst notes, with a bullish buy recommendation and $300 price target.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
