Shares of Singapore games developer rose up by 880%
Singapore-based game developer Sea has risen more than 880% in 18 months, Forbes reports citing Bloomberg. The company also deals with e-commerce and payments. It showed the most significant growth among all organizations with $1 billion capitalization or more.
Sea is developing literally by leaps and bounds, it has already become the leader in the Southeast Asian market, when its price reached $65 billion. The revenue of developers is also growing rapidly, only last year it grew by 163% and reached $2.2 billion. By 20% Sea is owned by the Chinese giant Tencent. According to information for May, its shares remained the main asset of the Dynamic Power Growth Class fund — one of the most successful in the last ten years.
Sea’s head and creator Forrest Lee became a billionaire this summer. According to Forbes Real-Time, he is in 256th position among the richest entrepreneurs, his fortune reaches $7.8 billion. In an interview with Bloomberg, Lee said that he has been in the office every day since mid-spring, as demand for the company’s products has risen sharply for time of a pandemic. In addition, Sea is preparing to obtain a license in Singapore to conduct digital financial activities.
The entrepreneur created the company in 2009. Then it was called Garena. With the backing of Tencent, he listed it on the New York Stock Exchange in 2017. Initially, the company grew thanks to the first mobile game Free Fire, which gained 80 million daily users. Today Sea aims to take over the e-commerce and financial services sectors. In the last quarter of last year, Sea’s Shopee overtook Alibaba’s Lazada to become the leading service provider in this space.
Daniel Jacobs, a partner at hedge fund Kora Management, said Sea is like a “little Tencent,” as it has every chance of capturing the market. The investor was also not embarrassed by the fact that the losses of the game developer last year amounted to $1.46 billion.
At the same time, DBS Bank analyst Sachin Mittal, on the contrary, changed his recommendations regarding Sea. He is confident that a bubble is starting to grow in the technology company industry. The expert stressed that Sea shares are overvalued, which to some extent reflects the situation on the market as a whole. Skeptics also argue that the game developer has many competitors in every direction in which it develops. Besides, Sea needs to create something else except the main hit, which helped to build her entire business. The company now faces a difficult task — to meet the expectations of investors.