5 Fintech Stocks Getting Hammered Amid Economic Weakness

3. Sea Limited (NYSE:SE)

YTD Share Price Decline as of July 28: 65.55%

Number of Hedge Fund Holders: 77

Sea Limited (NYSE:SE) is a Singapore-based company that specializes in digital financial services across Southeast Asia, Latin America, and the rest of Asia. The company also operates as a digital entertainment and e-commerce provider. The stock has plummeted roughly 66% year to date as of July 28. Daiwa analyst John Choi on July 28 lowered the price target on Sea Limited (NYSE:SE) to $110 from $130 and kept a Buy rating on the shares ahead of the Q2 results. The analyst observed that regardless of the uncertainties in consumption demand and inflationary headwinds, Shopee is likely to “weather through the storm” by enhancing its efficiency and monetization strategies.

Hedge fund sentiment around Sea Limited (NYSE:SE) declined notably in the first quarter of 2022. Among the hedge funds tracked by Insider Monkey, 77 funds were bullish on Sea Limited (NYSE:SE) at the end of Q1 2022, down from 108 funds in the earlier quarter. Chase Coleman’s Tiger Global Management is the leading stakeholder of the company, with 13.5 million shares worth $1.6 billion. 

Here is what Baron New Asia Fund has to say about Sea Limited (NYSE:SE) in its Q1 2022 investor letter:

“Sea Limited, a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea faced significant multiple compression in the quarter, exacerbated by a slowdown in user growth at its key Free Fire digital game and mounting investments in its e-commerce operation, particularly in new markets like Brazil. We exited our position as we lost confidence in the long- term unit economics in some of Sea’s new markets and were concerned by the simultaneous slowdown in revenue growth and increase in underlying cash burn.”