What happened
Shares of Sea Limited (SE 3.25%) 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.
So what
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.
Image source: Getty Images.
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.
Now what
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."
