Cathie Wood is Giving Up on These 5 Tech Stocks

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1. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 77

Percentage Decline in the Stake: 67%

Sea Limited (NYSE:SE) specializes in the digital entertainment, e-commerce, and digital financial services businesses. Cathie Wood slashed her position in Sea Limited (NYSE:SE) by 67% in Q2 2022. Her hedge fund held 2.6 million shares of the company in Q1 2022, which declined to 868,561 shares in the June quarter. 

On July 15, Stifel analyst Scott Devitt lowered the price target on Sea Limited (NYSE:SE) to $105 from $115 and kept a Buy rating on the shares ahead of the company’s Q2 earnings. Although he left estimates for Q2 unchanged, he “moderately” trimmed his second half estimates as a result of ongoing macro uncertainty and recent headwinds from the strengthened U.S. dollar, the analyst told investors.

Hedge fund sentiment declined around Sea Limited (NYSE:SE) at the end of March 2022. The number of long hedge fund positions declined to 77 from 108 in the earlier quarter. Chase Coleman’s Tiger Global Management is the leading position holder in 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.”

You can also take a look at 10 Stocks to Watch as Cathie Wood’s Fund Starts to Rebound and 10 Small-Cap Growth Stocks in Cathie Wood’s Portfolio.

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