Internet Firm Sea Misses Sales Estimates on Slowing E-Commerce Demand
- Online-retail arm Shopee posts slowest growth on record
- Analyst sees ‘brutal battle’ ahead for Sea in online retail
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Sea Ltd. fell its most ever after reporting disappointing revenue and outlining plans to increase investment in e-commerce, a strategic shift that could erode margins and trigger a price war with TikTok and Alibaba.
The stock plunged 29% in New York after Sea reported that sales grew a lower-than-expected 5.2% in the second quarter, when it pulled back on shopping promotions and gaming revenue plunged 41%. Chief Executive Officer Forrest Li said the company intends to expand Sea’s online shopping arm, Shopee, and that “such investments will have impact on our bottom line and may result in losses.”