Shopee’s shift to growth shows fear over TikTok Shop’s rise

SEA’S latest quarterly showing, while profitable, missed analysts’ estimates on revenue. Its e-commerce arm Shopee also reported its slowest growth in years.

But that was not the reason why investors sold down Sea shares, which fell 29 per cent, losing US$16.32 to US$40.58 on Tuesday’s (Aug 15) market close.

In a shift in strategy, chief executive officer Forrest Li said the group would be investing in growing its e-commerce business, and “such investments will have (an) impact on our bottom line and may result in losses”. In an earnings call, Indonesia was mentioned as a key market for growth in e-commerce.