Shares of Sea Limited (SE) are soaring again today, up over 5%. The stock has surged 37% in just the last two weeks and is up more than 670% since the 2020 March lows. While the company is growing quickly, investors need to question if this e-commerce and gaming company should be trading at 28x 2020 revenues. Sea Limited is not projected to turn a profit in 2021 or 2022, perhaps not even in 2023. This stock exemplifies the frothy markets and low cost of capital inflows. The Sea Limited stock chart analysis shows a major trend line tagged today at $278/share. A somewhat thin stock, when the pull back comes it could be sharp and nasty. A move to $200/share would only be a drop to the low pivot from just 2 weeks ago.
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