Originally Posted by Unregistered

Aletheia Capital initiates 'sell' call on Sea Limited with TP of US$40

Sea Ltd is “cash destructive” and “overvalued” in terms of its fundamental metrics. “The cash burn is likely to worsen with its foray into payments and it could be eclipsed by its e-commerce competitors.”

Further to his report, it lists several downsides to the counter, which includes Sea’s “bloated” e-commerce segment, pointing out that the segment is unlikely to see a positive ebitda till the FY2025.

“The Covid-19 spike in e-commerce revenue and gross merchandise value (GMV) has evaporated,” the analyst writes. “However, Sea Limited has misallocated resources by excessively expanding its e-commerce business in Asean and entering Latin America (LATAM). Operating expenses has tripled between FY2020 and FY2022.”