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On September 10, SE announced that it had raised approximately $6 billion in an equity and convertible bond sale, the proceeds from which it expects to use for strategic investments and potential acquisitions. However, move was not well received by all. Lightstream Research analyst Oshadhi Kumarasiri said, “The reason for this fundraising could be an early indication that the gaming business is no longer capable of funding the e-commerce and fintech growth.”
In addition, the company continues to face intense competition from e-commerce giants such as Amazon.com, Inc. (NASDAQ:AMZN) and other regional players, including MercadoLibre, Inc. (MELI) and Coupang, Inc. (CPNG). Furthermore, SE has witnessed a decline in hedge fund sentiment lately. So, the stock’s near-term prospects look bleak.
