Shopee-owner Sea’s share jumps amid upbeat e-commerce outlook

Shares of the New York Stock Exchange-listed company closed Thursday at $76.80, up 18.2% since the beginning of the week.

Sea recently said that it expects the value of goods sold by its online shopping platform Shopee to jump more than 20% this year.

It also said the division should turn profitable on an adjusted basis in the September quarter.

The forecast eases some worries about Shopee’s outlook as it faces rising competition from ByteDance’s TikTok and Alibaba Group’s Lazada, according to Bloomberg.

Investors are closely monitoring whether Shopee’s increased merchant fees can improve margins without compromising its advantage over these well-funded rivals.

“The certainty of the profit timing provides a strong signal that management is confident of defending its position despite competition,” Citigroup analyst Alicia Yap said in a research report.

Although Sea saw net income falling 75.9% to $79.9 million, the results were higher than analysts’ estimates. “I’m happy to report that it has been a solid quarter for us,” chairman and CEO Forrest Li said in a news release Tuesday, as reported by Nikkei Asia.

Over the past two quarters, Shopee has been able to post healthy and sustainable growth, he said. “We have made it easier and more attractive for sellers to join our ad platform.”