In this article, we discuss the 5 biggest losers of the technology stocks crash. If you want to read our detailed analysis of why these and other tech stocks are struggling right now, go directly to Technology Stocks Crash: 10 Biggest Losers.
5. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 108
Percentage Decline in Share Price Over Past Month: 17%
Sea Limited (NYSE:SE) is a diversified technology company that hedge funds have been selling in recent months. At the end of the fourth quarter of 2021, 108 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Sea Limited (NYSE:SE), down from 117 in the previous quarter, when those positions were valued at $14 billion.
On January 27, Goldman Sachs analyst Miang Chuen Koh downgraded Sea Limited (NYSE:SE) to ‘Buy’ from ‘Conviction Buy’ and reduced the firm’s price target on the stock to $300 from $460, noting that the near-term visibility for the firm was challenging.
In its Q4 2020 investor letter, Hayden Capital, 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): When I wrote our Q4 2019 letter about Shopee launching a Brazilian business, it seemed very few investors or competitors knew or cared.
A year ago, I wrote: “This is the first test for the ecommerce marketplace outside of its Southeast Asia home base. Will the platform’s fun and addicting features overcome a lack of local knowledge and presence? It’s hard to predict consumer behavior and how accepting users will be to a platform – especially one that’s a foreign culture and 10,000 miles away. The only way to know is to experiment and watch the results closely.
Empirically though, it seems that what consumers find entertaining in Asia, generally translates well to Brazil (and Shopee really is as much an entertainment platform, as an ecommerce one).
For example, just look at the top 10 free apps in Brazil. Two are utility messaging apps, so we’ll ignore those (WhatsApp and
Facebook Messenger). But among the remaining eight apps, they’re all entertainment based and overwhelmingly Asian. Four are from China (Kwai, TikTok, VStatus, TikTok Lite), two from Singapore (Free Fire and Shopee, both Sea Ltd apps), and one from the US (Instagram). The commonality is that all these apps are experts at creating addictive habits, as evidenced by their personalized recommendations, avg usage time, number of logins per day per user, etc.” (LINK)
I distinctly remember having conversations with several Brazilian hedge funds as recently as last summer who were investors in Sea Limited (NYSE:SE). When the topic of Brazil came up, many of them didn’t even know Shopee was operating in their own backyard!
Part of this stems from the fact that Shopee..”[read the entire letter here]
