What Happened?
Shares of e-commerce and gaming company Sea (NYSE:SE) jumped 2.2% in the morning session after Deutsche Bank upgraded the stock from 'Hold' to 'Buy', and the company posted strong third-quarter financial results.
The bank also raised its price target on the shares to $170. The positive sentiment was supported by Sea's latest financial report, which showed a 38.3% year-on-year increase in total revenue, reaching $6.0 billion. The company also saw a significant 144.6% rise in net income to $375 million. Further boosting the results, its e-commerce platform, Shopee, delivered strong gross merchandise value growth of 28% compared to the previous year.
After the initial pop the shares cooled down to $145.98, up 2.5% from previous close.
Is now the time to buy Sea? Access our full analysis report here.
What Is The Market Telling Us
Sea’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 3.6% on the news that optimism surged over a potential trade truce between the U.S. and China. Reports of progress in trade negotiations ahead of a scheduled meeting between the two nations' presidents fueled investor confidence. An agreement would likely ease trade tensions and reduce or remove tariffs that have created economic uncertainty and higher costs for many multinational corporations. Also, optimism improved on expectations that the Federal Reserve will cut interest rates later in the week, especially after recent data showed inflation wasn't heating up as much as expected. Simply put, good news on trade, and the promise of lower borrowing costs created a powerful rally.
Sea is up 39.2% since the beginning of the year, but at $145.98 per share, it is still trading 25.7% below its 52-week high of $196.50 from September 2025. Investors who bought $1,000 worth of Sea’s shares 5 years ago would now be looking at an investment worth $816.56.
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