Sea (SE US) US
Consumer Discretionary
Shares were up over 30% following a relatively small topline beat of 4.8% and a narrower than expected operating loss of $495.6m - Oshadhi Kumarasiri sees this as a great opportunity to make substantial gains on the short side in the near term as e-commerce and fintech remain unprofitable after cutting down necessary expenses such as logistics facilities and senior management cash compensation. Oshadhi estimates fair EV at ~$10bn (Gaming: $2bn, e-commerce: $5bn, Fintech: $3bn) vs. the current EV of $33.1bn, which implies 66% downside to Sea’s post-3Q22 price.
Edition: 149
- 25 November, 2022