.July 22, 2024 10:37:00 AM

Sea (NYSE:SE) shares rose nearly 2% in pre-market after BofA Securities analysts increased their price target to $77, maintaining a Buy rating. Q2 results are expected to be stable, with revenue projected at $3.8 billion, a 23% increase, and a positive net income of $25 million compared to a $24 million loss in Q1. E-commerce GMV is forecasted to decline 2% to $23.1 billion, with a rise in take rate to 12.1%. Despite competition, investments in the second quarter may lead to a small EBITDA loss of $5 million for Shopee.

In the gaming sector, steady momentum is expected in the second quarter, driven by young gamers in Indonesia and content updates. Gaming revenues and EBITDA are projected to remain flat quarter-over-quarter. For the digital financial services segment, a slowdown in revenue momentum is anticipated, with an estimated $20 million quarter-over-quarter addition to revenue. EBITDA margins are expected to remain largely flat. The slowdown is attributed to a cautious approach to unsecured loans and zero-interest loans to increase lending services adoption.