Sea Ltd. once one of the hottest stock in the world, has lost more than $130 billion in market value from its peak last year amid disappointing earnings report.
Earlier the company gave a muted forecast for its digital entertainment business and share fell 13% in U.S. trading cutting aways $11 billion in market valuation accumulating $132 billion from its highs in October last yer.
The company had factored in a slowdown in online activity and unexpected government actions in India in its forecast, Yanjun Wang, Sea’s group chief corporate officer, said on a conference call on Tuesday night.
“We are giving back some of the gains we made partially during Covid and with additional discounts to reflect the situation in India, which is highly unfortunate,” Wang said. “Given the uncertainty we are facing, it’s probably more art than science for us.”
Seas faces increased regulatory pressure in India and dropped more than $16 billion in value after New Delhi abruptly banned its most popular mobile gaming title, underscoring the geopolitical challenges it faces in expanding its offering beyond Southeast Asia.