Sea Limited (NYSE:SE) stock is falling on Monday as the digital entertainment and e-commerce company deals with pressure from TikTok in Indonesia.
The trouble for SE stock comes from TikTok spending $1.5 billion to acquire and further invest in GoTo’s Tokopedia e-commerce platform. That gives it another chance at doing business in the country after its TikTok Shop was closed due to regulatory concerns.
A breakdown of the deal sees TikTok acquire a 75.01% stake in Tokopedia. With this investment, the company is able to directly introduce its TikTok Shop through the platform.
Patrick Walujo, CEO of GoTo, said the following about the news in a statement to Reuters:
“We are creating an Indonesian e-commerce champion, combining Tokopedia’s strong local presence with TikTok’s mass market reach and technological prowess. GoTo now sits on a much stronger foundation and we expect this partnership to bring many benefits not just for e-commerce, but for our on-demand services and fintech businesses as well.”
How This Affects SE Stock Today
Investors in SE stock are rattled today, with heavy trading pulling shares lower. This comes as investors sell the stock, with some 13 million units traded as of the time of publication. To put that in perspective, the company’s daily average trading volume is about 8.3 million shares.
SE stock is down 5.9% as of Monday morning. The stock is also down 28.9% since the start of the year.
Investors looking for more of the latest stock market stories are in luck!
We have all of the hottest market news ready to go on Monday! Among that is what has shares of Qudian (NYSE:QD), Macy’s (NYSE:M) and Cigna (NYSE:CI) in the news today. All of that info is ready to go at the following links!
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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.
