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When TikTok is spotted in the waters, a lot of companies, institutions, and even governments start acting like sharks are circling them and there’s blood in the water.
Whether it’s security concerns in the US or the outright ban in India, the Chinese social media app inspires fear wherever it goes.
Maybe TikTok should also have an ominous soundtrack like the infamous “dum, dum” theme from Jaws.
In Southeast Asia, TikTok is causing alarm not over data collection or even spying, but from its entry into the world of ecommerce.
TikTok Shop is growing in several markets and initiatives like the ominously titled “Project S” have politicians concerned for the future of small businesses.
So far, we’ve largely been talking about imagined fears. Sea Group (SE, NYSE) may have actually suffered a bite from the TikTok shark – and is going to need a bigger boat.
After the tech conglomerate missed analysts’ estimates for its revenue in the second quarter of this year, its value plunged 29% – the biggest daily drop since it listed in 2017.
In today’s Big Story, my colleague Simon dives into Sea’s Q2 2023 earnings and investors’ fears that its ecommerce unit Shopee is in for a bloody struggle with TikTok Shop.
— Peter
THE BIG STORY
Image credit: Timmy Loen
Why Sea’s shares plunged while GoTo’s avoided the carnage
The pessimism came despite Sea reporting net income that exceeded expectations.
3 Trends to keep an eye on
Hot stocks, earnings reports, restructuring, pressure from activist investors, and more.
2 Eye-popping facts
The one you didn’t see coming
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