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4. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 77     

Loss in Share Price Year-to-Date as of June 30: 69.15%

Sea Limited (NYSE:SE) is a diversified technology company. Latest data shows that ARK owned close to 2.6 million shares of Sea Limited (NYSE:SE) at the end of March 2022 worth $315 million, representing 1.31% of the total portfolio. In mid-May, the firm posted earnings for the first quarter of 2022, reporting a revenue of $2.9 billion, up over 61% compared to the revenue over the same period last year and beating analyst expectations by $40 million. The total gross profit in the quarter was $1.2 billion, up 81% year-on-year. 

On May 19, Barclays analyst Jiong Shao maintained an Overweight rating on Sea Limited (NYSE:SE) stock and lowered the price target to $157 from $201, noting that the firm was delivering despite reopening headwinds in Southeast Asia and tough competition. 

At the end of the first quarter of 2022, 77 hedge funds in the database of Insider Monkey held stakes worth $5 billion in Sea Limited (NYSE:SE), compared to 108 in the previous quarter worth $10 billion.

In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Sea Limited (NYSE:SE) was one of them. Here is what the fund said:

“Sea Limited (NYSE:SE), a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea Limited (NYSE:SE) 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.”