Singapore-based internet services company Sea Limited jumped Tuesday, rebounding from a recent dip to move ahead of its 21-day moving average.
On the stock market today, Sea stock rallied nearly 7% to 56.37 in late morning trades. Shares have gained nearly 40% this year after a rough 2023.
The stock could be benefiting from a new client note by analysts at JPMorgan. The analysts wrote that they believe efforts by TikTok Shop to improve take rates in Indonesia could allow Sea to do the same in the country for its Shopee e-commerce business, according to a description by The Fly, a stock market news website. JPMorgan maintained a positive overweight rating for Sea and a 70 price target, according to The Fly. TikTok is a top competitor to Shopee in Indonesia.
Before that, JPMorgan analysts upgraded their outlook for Sea stock to overweight, from neutral, in March.
Sea Stock: Recent Q4 Earnings Beat
Sea is one of the largest internet services providers in Southeast Asia. It operates businesses in digital entertainment, e-commerce, and digital payments and financial services. The company's products include the e-commerce focused Shopee, which services Southeast Asia and Taiwan. The company also owns digital-payments provider SeaMoney and Garena, a global online games developer.
The company's stock struggled big-time last year. Investors reacted negatively, starting last summer, when Sea said it would to ramp up investment for its Shopee e-commerce business to compete with challengers in the Southeast Asia market, including TikTok Shop and Temu. That marked a shift for a company that in 2022 focused on cutting costs to reach profitability.
A strong earnings report last month helped push Sea stock higher. Shares hit a six-month high at 63.25 on March 14, before easing back.
Meanwhile, Sea stock ranks No. 10 out of 60 stocks in IBD's Retail-Internet industry group, according to IBD Stock Checkup. It has a so-so IBD Composite Rating of 63 out of 99.
IBD's Composite Rating combines fundamental and technical metrics for an overview of a stock's strengths. The best-rated growth stocks have a Composite Rating of 90 or better.
