Sea Limited (SE 5.25%) was down over 8% at one point on Tuesday, July 27, with no significant news that could have caused the price drop. In today's video I look at fundamentals and recent news for Sea Limited, and below I share a few highlights from the video.
- Tencent (TCEHY 3.49%) and numerous Chinese stocks were down on Tuesday, as investors became more wary of investing in Chinese-based stocks due to governmental interference in multiple companies. Even though Sea Limited is not a Chinese-based company, Tencent owns roughly 22% of Sea Limited.
- Sea Limited is a company that focuses on three high-growth markets: e-commerce, gaming, and fintech. The segment that Sea Limited makes most of its money from is gaming, and this is where it overlaps with Tencent.
- Garena, Sea Limited's gaming platform, has numerous games that people in Southeast Asia can play. Some of the games on this platform are brought through licensing deals and its partnership with Tencent. The fear of Tencent having some impact on Sea Limited's future revenue could have sparked some fear in investors.
*Stock prices used were the midday prices of July 27, 2021. The video was published on July 27, 2021.
