Shares of internet and mobile platform company Sea Limited (SE) have declined 6% in price since the company announced an 84 cents loss per share in its last reported quarter, which missed the consensus estimate. So, the question is, is it wise to buy the stock now based on its consistent product and services innovations? Let’s find out.Singapore-based e-commerce and gaming company Sea Limited (SE) has released its third-quarter financial results. While it beat Wall Street’s revenue estimates by 8.4%, the company’s 84 cents loss per share missed the consensus estimate by 37.4%. Wall Street raised the e-commerce company's guidance for fiscal 2021, expecting e-commerce revenue to be between $5 billion and $5.2 billion, respectively, compared to the previous guidance of $4.7 billion to $4.9 billion.
The stock has lost 13% in price over the past month to close yesterday’s trading session at $310.74.
In addition, BofA Analyst downgraded the rating for SE from Buy to Neutral and reduced the earnings estimates for fiscal 2022 and 2023 from a $3.1 and $1.05 loss per share, respectively, to a $5.72 and $4.45 loss per share. Furthermore, SE is selling shares for business expansion and other general corporate purposes, including potential strategic investments and acquisitions, leading to share dilution. So, SE’s near-term prospects look bleak.