Sea Limited News: Why Is SE Stock Dropping Today?

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Sea Limited (NYSE:SE) stock is on the move today as investors react to the consumer internet company’s earnings report for the fourth quarter of 2021.

Image of the Free Fire mobile game from Sea Limited representing SE stock.

Source: bagussatria / Shutterstock.com

Let’s start off with the company’s adjusted earnings per share for the quarter, which came in at -88 cents. That’s slightly wider than the -87 cents per share reported during the same time last year. It’s also nowhere close to the -59 cents per share that Wall Street was expecting.

Next up we have to discuss Sea Limited’s revenue of $3.2 billion. That represents a 105.7% increase year-over-year compared to $1.6 billion. It’s also a highlight from the earnings report compared to Wall Street’s estimate of $2.91 billion.

So what can we expect from Sea Limited in 2022? Based on the company’s guidance, revenue for the year should come in between $12.9 billion and $13.5 billion. That’s based on its revenue outlook for digital entertainment, e-commerce, and digital financial services. However, Wall Street’s estimate for the year is revenue of $14.17 billion.

Forrest Li, chairman and CEO of Sea Limited, said the following about the company’s Q4 earnings report below.

“While there are some headwinds impacting our digital entertainment business in the near term, we continue to remain extremely focused on developing Garena’s global platform, which we see as a key strategic asset in the long run.”

Heavy trading comes for SE stock alongside its most recent earnings report. As of this writing, more than 12 million shares of the company’s stock have changed hands. That’s already above its daily average trading volume of about 8.9 million shares.

SE stock is down 12.3% as of Tuesday afternoon.

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On the date of publication, William White did not have (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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/sea-limited-news-why-is-se-stock-dropping-today/.

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