Market’s contrasting reactions to Grab’s and Sea’s financials show that growth alone is not enough

SOUTH-EAST Asian tech giants Grab and Sea both recently announced their financial results for the second quarter ended June 2024. But market reactions to their earnings calls tell very different stories.

Shares of gaming and e-commerce player Sea have surged 23.7 per cent to US$82.81 as at Aug 26 since its results announcement on Aug 13, as it beat analysts’ consensus on top line and net profit to return to profitability in Q2.

The group also revised its guidance for e-commerce arm Shopee’s full-year gross merchandise value growth upwards to mid-20 per cent, from high teens previously.