Shares of Sea Limited (NYSE:SE) were rising 5% in morning trading Monday as the Asian digital entertainment company continues on the growth trajectory it's been following for over a year.
Although there was no specific news driving the stock higher today, the gaming, e-commerce, and digital finance company has been benefiting from the global coronavirus pandemic that is forcing people to stay at home.
With little for people to do but play games, companies similarly situated to Sea have been enjoying a bumper crop of growth. For example, the Nintendo Switch hybrid game console has been out of stock, and now the lower-priced Switch Lite is also unavailable at most major e-commerce and brick-and-mortar retailers on and off line.
Sea reported last month that first-quarter revenue more than doubled to $715 million as the pandemic increased demand for online digital entertainment and e-commerce. Its active user base continues to grow and its self-developed Free Fire game grows in popularity.
Shares of Sea Limited are up nearly 50% since it reported earnings and are 165% higher year to date. The stock has more than quadrupled in value from its low point last October.
The business is still unprofitable, but recently announced a $1 billion convertible note offering to pay the cost of capped call transactions related to existing notes, with the net proceeds possibly going toward "strategic investments and acquisitions."