Shares of Sea Limited (SE -7.50%) were climbing today, rising alongside broad gains in high-growth tech stocks as the 10-year treasury yield fell and investors responded favorably to details about President Joe Biden's $2 trillion infrastructure plan.
There was no specific news out on Sea Limited, but Cathie Wood's Ark Invest fund management company said it bought the stock yesterday, which may have encouraged other investors to follow suit.
As of 11:15 a.m. EDT, the stock was up 5.4% while the Nasdaq Composite had gained 1.5%.
Last night, Wood's ARK Fintech Innovation ETF (ARKF 1.02%) said it had bought 20,091 shares of the stock, spending roughly $4.5 million based on Sea's closing price yesterday.
What was notable about the purchase was that it was for the company's fintech fund, even though Sea, a tech company based in Singapore, is primarily known for its digital gaming and e-commerce businesses.
Sea launched a digital payments business, SeaMoney, in 2014, which pairs well with its e-commerce business, Shopee, and the company also received a full digital bank license last December. Total payment volume on SeaMoney reached $7.8 billion last year, and it reached 23.2 million users in the fourth quarter, showing the business gaining scale.
Sea shares soared over 2020 as the company was well positioned to capitalize on the pandemic with exposure to digital gaming, e-commerce, and digital payments, getting multiple boosts from the stay-at-home effects of the crisis. This year, shares have been volatile as the stock is down 17% from its peak in February, but there are a lot of reasons to like Sea, including its fast-growing business in South America, showing it's capable of expanding beyond its home region of Southeast Asia.
Ark Invest's funds have gotten a lot of attention in recent months as its shares soared during the pandemic, and the company says it invests in the the most innovative and disruptive companies. It's not surprising to see Sea Limited in its portfolio.