Why Did Sea Plunge 6.72% Despite Strong Earnings?

On April 3, 2025, Sea's stock experienced a significant drop of 6.72% in pre-market trading, reflecting a notable decline in investor sentiment.

Loop Capital recently raised its price target for Sea Limited from $135.00 to $165.00, maintaining a "buy" rating. This move indicates a positive outlook on the company's future performance, which could have contributed to recent fluctuations in the stock price.

Sea Limited has shown strong financial performance, with earnings growing by 194.8% over the past year. This robust growth is expected to continue, with earnings forecasted to increase by 32% annually. Such impressive financial metrics often attract investor interest and can influence stock price movements.

Additionally, Sea has demonstrated a healthy balance sheet, with a 93% increase in EBIT, which reduces the risk of future debt repayments. This financial stability can provide reassurance to investors, potentially mitigating some of the recent downward pressure on the stock.