Sea Ltd falls 13% after saying it will prioritize investing in the business

investing.com:

Sea Ltd (NYSE:SE) reported third-quarter results that exceeded analyst estimates, however, shares fell more than 13% in pre-market Tuesday.

The company posted total revenue of $3.31 billion, beating the consensus estimate of $3.17 billion. Within its segments, E-commerce revenue reached $2.42 billion, surpassing the estimated $2.18 billion.

Digital entertainment revenue amounted to $592.2 million, exceeding the estimate of $556.5 million, while Digital Financial Services revenue totaled $446.2 million, slightly below the estimated $448.9 million.

Sea reported an adjusted EBITDA of $35.3 million, while earnings per share came in at 26 cents, ahead of the expected 12 cents.

While earnings were better than expected, shares likely fell on the CEO Forrest Li’s comments.

“In this current period, we will prioritize investing in the business to increase our market share and further strengthen our market leadership,” Li said.

“We are committed to maintaining a strong cash position, not relying on external funding, and investing within our means at a time and pace of our choosing. At the same time, given that e-commerce penetration remains low in most of our markets, we as the market leader have a responsibility to help grow the whole e-commerce ecosystem.”