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Shoppee’s Parent Company Sees Stock Value Soar Even As Growth Slows Down

Shoppee’s Parent Company Sees Stock Value Soar Even As Growth Slows Down

Shoppee’s Parent Company Sees Stock Value Soar Even As Growth Slows Down

Stock value of Southeast Asia’s eCommerce and gaming company Sea Group rose 14% after it reported Q1 results that exceeded analysts’ estimates.

The company reported a total revenue of $2.9 billion, which was 64.4% higher than the same period last year. However, it was 9.5% lower than the previous quarter, which is indicative of an oncoming slowdown in the company’s pandemic-fueled growth.

Sea Group’s two revenue-generating arms, eCommerce platform Shopee and gaming platform Garena, reported a slowdown in revenue compared to the previous quarter.

Shopee, for one, reported $1.52 billion in revenue during the first quarter, down from $1.59 billion in the previous quarter. In addition, the eCommerce division reported losses arising from an increase in marketing and logistics costs.

Parent company, Sea Group, expects supply chain issues, inflation and consumers’ return to shopping in physical stores to further impact business in the coming months.

“As we enter a new period, we recognize that the current macro trend and uncertainties could affect our region and world in the near term,” said Sea’s Chief Executive Officer Forrest Li.

In response to these market uncertainties, Sea Group said it is widening its full-year revenue guidance to the range of $8.5 billion to $9.1 billion.

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