5 Tech Stocks To Sell Right Now According To Cathie Wood

2. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 51

Percentage of Stake Discarded: 84%

Cathie Wood sold 84% of her Sea Limited (NYSE:SE) shares in the fourth quarter of 2023. At the end of December, ARK owned only 3,681 shares of the company valued at $149,081. Sea Limited (NYSE:SE) operates in the digital entertainment, e-commerce, and digital financial services sectors worldwide. 

On February 1, Citi upgraded Sea Limited (NYSE:SE) based on the belief that losses for its Shopee e-commerce unit may improve soon. The investment firm cited uncertainty in the Southeast Asia e-commerce landscape, noting potential impacts from TikTok shopping and its integration into the Toko app ahead of the Hari Raya promotional campaign. Analyst Alicia Yap sees an inflection point in the coming months if Shopee maintains its leading position through strategic spending, coupled with a gradually improving monetization rate and reduced EBITDA losses. As a result, Citi raised its rating on Sea Limited (NYSE:SE) to Buy from Neutral and increased the price target on the shares to $50 from $44.

According to Insider Monkey’s fourth quarter database, 51 hedge funds were long Sea Limited (NYSE:SE), compared to 55 funds in the earlier quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company, with 14.3 million shares worth $580 million. 

Artisan Developing World Fund stated the following regarding Sea Limited (NYSE:SE) in its fourth quarter 2023 investor letter:

“Bottom contributors to performance for the quarter included Southeast Asian e-commerce leader Sea Limited (NYSE:SE). Sea was negatively impacted by rising investment spend, and TikTok’s announcement of a partnership with Tokopedia which resulted in the relaunch of TikTok Shop in Indonesia.”

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