After falling nearly 37% over the past month, shares of the consumer internet company Sea Ltd. (NYSE:SE) have fallen an additional 4.8% at the time of writing. This can be attributed to Wall Street continuing to sour on the stock following a disappointing second-quarter outing.
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While Sea clocked a reasonable 20.6% jump in its eCommerce revenue and a 53.4% jump in its Digital financial services revenue during the quarter, its credit losses climbed higher by 37.1%.
J.P. Morgan’s Ranjan Sharma has downgraded the stock’s rating to a Hold from a Buy. Sea is banking on investments in eCommerce to drive growth, but Sharma feels this move could weigh on the company’s bottom line in the short term.
Earlier this week, Citi analyst Alicia Yap also lowered her rating on the company to a Hold from a Buy, while lowering the price target to $50 from $98. Yap believes competition in Sea’s market is heating up and the company will soon be in a “Brutal battle” to maintain its market share.
Overall, the Street has a $73.32 consensus price target on Sea alongside a Moderate Buy consensus rating. This implies an 85.7% potential upside in the stock.
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