5 Rebounding Tech Stocks to Watch

4. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 77

5-Day Percentage Increase in Share Price as of August 5: 14.45%

Sea Limited (NYSE:SE) was incorporated in 2009 and is headquartered in Singapore. The company operates digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, and internationally. On July 26, Citi analyst Alicia Yap maintained a ‘Buy’ rating on Sea Limited (NYSE:SE) but lowered the price target on the shares to $145 from $156 ahead of the Q2 results. Amid global macro crisis, higher interest rates, and a robust U.S dollar against most ASEAN currencies over the last few months, forex headwinds will potentially weigh on the growth for Sea Limited (NYSE:SE)’s dollar-denominated financials, the analyst told investors. The analyst slashed sales estimates to factor in the currency impact and slower consumer sentiment.

According to Insider Monkey’s data, 77 hedge funds were long Sea Limited (NYSE:SE) at the conclusion of the first quarter of 2022, with collective stakes exceeding $5 billion. Chase Coleman’s Tiger Global Management is the leading stakeholder of the company with 13.5 million shares valued at $1.6 billion.  

Here is what Baron New Asia Fund had 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.”