The market value of regional internet giant Sea has doubled in over two months, reaching over US$40 billion at the beginning of June.
Photo credit: Sea
The biggest jump happened in May, when the company started the month with a value of US$25.3 billion. Sea’s stock jumped by 12.2% on May 18, the day it reported its first quarter results, closing at US$69.49. Yesterday, its stock closed at US$90.88.
Based in Singapore, Sea operates digital entertainment platform Garena and ecommerce major Shopee. It also has a digital payments business called SeaMoney.
During the first quarter of 2020, Sea posted a total adjusted revenue of US$914 million, a 57.9% increase compared to the US$579 million it had recorded in the same period in 2019.
The growth was mainly driven by Garena, which grew its revenue by 30.3% year on year to US$512 million. Meanwhile, Shopee drew US$314 million in revenue, a 111% jump from the US$149 million it had reported a year prior.
Sea’s continued growth, coupled with strong investor interest shown by its climbing market cap, means that its business has been relatively safe from the effects of the global pandemic.
Covid-19 has been “materially accelerating a shift to online lifestyles that is broad, deep, and, in our view, irreversible,” Sea CEO Forrest Li noted during the company’s earnings call for the first quarter.
Li added that Sea will be able to profit from expanded growth opportunities as it continues to respond to increased consumer demand and react to potential business disruptions brought by the current crisis.
Editing by Charmaine de Lazo
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