Why Did Sea Plunge 10.86% Despite 32% Earnings Growth?

On April 4, 2025, Sea's stock experienced a significant drop of 10.86% in pre-market trading.

Loop Capital recently raised their price target for Sea's shares from $135.00 to $165.00, maintaining a "buy" rating. This adjustment reflects a positive outlook on the company's future performance, which could influence investor sentiment and potentially stabilize or even reverse the recent decline in stock price.

Over the past month, Sea's stock has seen a decline of 8%, which is more pronounced than the broader market's performance. This underperformance may be attributed to various factors, including market volatility and investor concerns about the company's recent financial results or strategic direction.

Despite the recent drop, Sea's earnings are forecasted to grow by 32% per year, and they have shown impressive growth of 194.8% over the past year. This strong earnings growth could provide a foundation for a rebound in the stock price, as investors may focus on the company's long-term prospects rather than short-term fluctuations.