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Southeast Asian group Sea Limited posted its first year of profits in 2023 as the company stepped up efforts to defend its business against rivals such as Alibaba’s Lazada and TikTok.
Company reports revenue of $162.7 billion and loss of $1.7 billion in 2023; This is a significant change from the previous year’s $1.7 billion loss. However, the loss in the fourth quarter of 2023 was $111.6 million, compared to a profit of $422.8 million in the same period in 2022.
Sea President and CEO Forrest Li emphasized this importance by strengthening the currency. -commerce market, growth of digital financial services and stability of the economy, digital entertainment.
Sea’s diversified portfolio includes e-commerce platform Shopee, SeaMoney’s digital financial services and Garena gaming room. Despite facing tough competition, especially in the e-commerce space, Sea’s Shopee managed to win business in 2023 and plans to maintain its position in 2024. >
The company’s financial services arm, SeaMoney, announced its first profit year. We demonstrated positive growth and profitability in all business areas in 2023. Sea expects the user base and pre-orders of its flagship game, Free Fire, to continue growing in 2024.
Investors reacted positively to Sea’s earnings results, with Sea’s New York shares closing up 5.58% on Monday. Analysts agree on Sea’s future vision, citing positive trends in business growth and profitability.
DBS Bank raised Sea’s price target to “Buy” from “Hold” with a price target of US$75, while analysts at CGS-CIMB Securities raised Sea’s price target to “M will” from “Hold” . “Buy” Sea upgraded its rating on Sea from “hold” to “overweight” and raised its price target to $74 per share. Wedbush also maintained its “outperform” rating, raising its price target for Ocean to $72 from $45.
Overall, analysts believe that Sea is in the early stages of success, with competitive pressures and investments in key sectors such as social media, customer acquisition and success starting to yield positive results. Sea’s approach to investment management and focus on future growth shows that the company has a bright future in the coming years.