$SE just reported earnings yesterday and is up since then but plenty of room to run (still 50% of it‘s highs from a year ago).
They took a beating due to a few quarters of horrendous earnings misses but here is why their latest earnings was so good:
1. Re-accelerating growth, crazy beat on topline. TikTok did NOT kill them
2. Profitability ok despite tough TikTok competition. Over the last year where TikTok basically caught up in share in key markets and Forrest & Chris in the earnings call said that they needed to reinvest for share gains, which the market hated since they interpreted it at growth at all cost. But now they showed that they can still grow while growing the bottom line and maintain share. Doesn’t seem like a zero-sum game anymore and long-term a duopoly is emerging
3. Consumer flywheel is working, Monee + Shopee is an obvious one. Enable financing so can buy more stuff on your platform. I.e. the typical America consumerism playbook. They‘ve also started to do some smarter collaboration w/ Garena and targeting their younger gamer base (new traffic & audience expansion for Shopee)
4. SEA exposure, VN is one of the fastest growing economies right now and one of their key markets (10% GDP growth target this year). It‘s a good international portfolio hedge
It‘s currently at \~$97 in after-hours (still 50% off 1 year highs) but with current levels likely to run $100+ easily. Targeting $150+ for my exit.
TLDR: Market thought TikTok would kill Shopee and they would go back to burning cash but instead they just had an insane, PROFITABLE, quarter. Shopee to $150+