Is it a good time to buy into Sea Group with the recent reports net loss of US$425.6 million in 3Q2020? - Seedly
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Anonymous

Asked 2w ago

Is it a good time to buy into Sea Group with the recent reports net loss of US$425.6 million in 3Q2020?

Think it's quite shocking for them to report a net loss though after their previously stellar performance in Q2.

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Max Soo

Max Soo

Level 5. Genius

Answered 2w ago

Let me elaborate more about the net loss. A lot of growth companies nowadays are loss-making but it's mainly due to the sales and marketing expenses. If you take a look at their last 4 quaters, they've all been net loses as well. The great companies are doing all they can to market themselves (see Shopee making Ronaldo an ambassador) in the early stages so they can gain majority of the market share.

If you compare the likes of Shopee, Lazada and other e-commere in SG/other SEA countries, you will know how fast Shopee has grown and captured more and more users onto their platform. Once they gain enough market share, this S&M costs will go decrease.

All of their sectors in Gaming (Garena), E-commerce (Shopee) and Digital Finance (SeaMoney) are steadily growing too.

I won't give advice on when is a 'good time' to buy but I will definitely add more if the prices fall just a little bit more. (Side note: I am vested in SEA.)

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Thank You!
Can you clarify
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