Breaking Down $SE's earnings (Patreon)

As per the ATR on the weekly lets you know where we are. Back in the buy zone. 

• Sea reported a surprise third-quarter loss of 26 cents per share, missing analyst estimates of a profit of 3 cents per share.  Hence the company got clobbered.  
• Revenue beat estimates and grew 4.9% to $3.3 billion, with the e-commerce segment growing more than 16%.  This was their goal. 
• The company is prioritizing growth over profits by pouring money into its e-commerce business.
• Sea expects to boost investments ahead of the key holiday shopping season in the fourth quarter. 4Q is always HUGE for SEA. 
• The company has spent heavily on "e-commerce live streaming", a model popular in China.
• Rising competition from Alibaba Group's Lazada and ByteDance's TikTok has forced Sea to revamp its playbook.
• Sea has undertaken hefty cost cuts including laying off thousands of employees.  We will see benefits of this in future qtrs.  

My cost basis is $40 and I am holding. The ATR will signal the size of the upside.  Mgt team is strong and they know how to position for the future.