Sea Limited increases merchant fees by one-third to boost profit, revenue increases 23% year-over-year.

From Nasdaq: 2024-08-13 09:27:00

Sea Limited’s stock price has surged 65.3% compared to the industry average of 9.7%, reflecting investor confidence in the company’s portfolio and cost management. The company increased commissions for merchants by one-third, aiming to boost profits. Sea Limited’s revenue in the second quarter of 2024 was $3.81 billion, a 23% year-over-year increase.

Sea Limited has improved SPX Express delivery speed, with over 70% of orders in Asia delivered within three days and an 8% decline in cost per order. The company’s emphasis on operational enhancements and service quality drove its strong quarterly performance. Sea Limited also benefits from the growing demand for logistics and reduced delivery times.

However, Sea Limited faces stiff competition from e-commerce giants like Alibaba, Amazon, and Walmart, risking the loss of merchants. Competitors like TikTok and Lazada offer lower commission rates, prompting potential merchant switches. Sea Limited currently holds a Zacks Rank #5 (Strong Sell), indicating some challenges ahead.

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