It was a surprise that Singapore’s internet giant Sea Ltd. had a setback, which meant that its wealthy cofounders lost an incredible $995 million in just one night. Let us get into the specifics of what took place and why.
Sea Ltd Billionaires Face Hard Times: Shares Drop 22%: Losses Overnight
The shares of the New York-listed company dropped sharply by 22%, which meant that chairman and CEO Forrest Li lost a lot of money—about $643 million. Li’s net worth dropped to $2.2 billion because of this quick drop. Chief Operating Officer (COO) Gang Ye also lost a lot of money. He lost about $352 million, which brought his net worth down to $1.7 billion. These three people, along with David Chen, began Sea in 2009. Shares went up by 7.3% the next day, though, which caught the market by surprise.
Sea Ltd Billionaires Face Hard Times: From Profit to Loss: A Quick Change
Even though Sea Ltd. said it made $3.3 billion in sales in the third quarter, which was 4.9% more than the same time last year, it ended the quarter with a net loss of $144 million. This was a surprise because the company had been making money for three quarters in a row before this sudden downturn.
Shopee Is Having Trouble: Slowest Growth Rate
Sea Ltd.’s main business, Shopee, brings in about two-thirds of the total income for the company. Its growth rate slowed down, though, and it only rose 16.2% year-over-year to reach $2.2 billion. This may sound like a lot of growth, but it’s actually the slowest rate of growth the company has ever seen.
Shares Bounce Back, Giving People Hope Wednesday Comeback: A Big Laugh
Even though they had lost a lot of value, Sea Ltd.’s shares showed they were strong by rising 7.3% on Wednesday. This unexpected comeback gives the company and its founders hope and a hint that things might get better.
Problems to Come: The Battle for E-Commerce Goes On
The Southeast Asian e-commerce market is very competitive, and Sea Ltd.’s latest financial setback shows how hard it is to work in this fast-paced field. Even though they’ve lost a billion dollars, the cofounders are still determined to ride out the storm so that their company can come out better after facing tough competition.
Moving Forward: A Long Trip Ahead
Time will tell if Sea Ltd. can make it through the storm and get its finances back on track as it sets sail into the future. The e-commerce giant is in for a tough ride right now, since its rich cofounders are keeping a close eye on the business waters in Southeast Asia.