The stock market declined after a volatile session on Tuesday. S&P 500 was lower 0.7% to 4,091, while NASDAQ decreased 0.2% to 12,439.
Meanwhile, Sea (SE) looks like a money pit as last qtr’s losses were unfathomable. It has losses left and right. I just can’t believe it.
Tweet of the Day
https://twitter.com/ecommerceshares/status/1526548835694268418?t=e21hzfbQsPhPbefHnxNjGw&s=08
Chart of the Day
Our chart of the day is the ten-year chart of SE.
SE is an Internet company based out of Singapore that is composed of a video game platform, an e-commerce store, and an e-wallet service. The company’s an affiliate of Tencent, China’s largest and most used internet service portal and leading video game company. SE’s market is Greater Southeast Asia, which includes Vietnam, Thailand, Malaysia, Singapore, Taiwan, the Philippines, and Indonesia. It’s also successfully entered Brazil, becoming the most downloaded shopping app within two years. SE operates three businesses — Garena, Shopee and SeaMoney.
Last qtr, SE lost $1.04 a share, versus a loss of $0.62 a year ago as sales increased 64%. However, cost of revenue jumped 55% and total operating expenses increased 68%, so in the end the operating loss rose 43% year-over-year. SE burned through $1.7 billion in cash last qtr.
SE was a top holding in the Growth Portfolio and Aggressive Growth Portfolio. This company is blowing money. I’m not buying the stock here. This stock now sells for 3x revenue. My Fair Value is also 3x revenue.
