Sea Ltd. shares tumble as analyst cites stretched valuation

Published 16/10/2025, 09:44
© Reuters.

Investing.com -- Sea Ltd. shares dropped 9.6% on Wednesday in U.S. trading, marking their steepest decline since April and interrupting a strong rally that had seen the stock gain 70% this year through Tuesday.

Philip Securities analyst Helena Wang attributed the sharp pullback to market adjustments related to the company’s valuation. "We think it is really just the market adjusting due to stretched valuation," Wang stated.

The analyst maintains a cautious stance on Sea Ltd. in the near term, noting that the company’s valuation appears extended following its substantial rally. Wang pointed out that Sea’s forward price-to-earnings multiple for fiscal year 2025 is significantly higher than its industry peers.

Adding to the concerns, Wang highlighted that Sea’s most recent quarterly results revealed slowing growth in gaming user metrics, which could potentially impact the stock’s short-term momentum.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.