E-Commerce Leader Sea Ltd. Readies $1 Billion Buyback. Stock Jumps Following Earnings Selloff.

Core Insights - Sea Ltd. announced a buyback plan of up to $1 billion for its American shares, reflecting the company's confidence in its long-term prospects [1][2] - Sea's stock rose over 3% to $145.49 in morning trades following the announcement [2] - The company operates the largest e-commerce platform in Southeast Asia, Shopee, and has expanded into Latin America, alongside other holdings like SeaMoney and Garena [3] Financial Performance - Sea reported third-quarter sales growth of 38% year-over-year, reaching $5.99 billion, which exceeded estimates [5] - Earnings per share increased by 146% to 59 cents, although this was below the expected 72 cents [5] - Year-to-date, Sea's stock is up approximately 33%, despite a more than 25% decline from its 52-week high of $199.30 reached on September 11 [6] Market Position and Competition - The stock has faced pressure due to rising competition in the e-commerce sector, particularly in Latin America and Southeast Asia [4][5] - Sea's Relative Strength score has decreased to 31 out of 99, down from 93 three months ago, indicating a weakening position in the market [7] - The overall e-commerce sector has seen a pullback after a strong performance in the first nine months of the year, with the cumulative Relative Strength rating for the Retail-Internet industry group dropping from 98 to 76 [7] Ratings and Analyst Insights - Sea holds an IBD Composite Rating of 70 out of 99, which combines five proprietary ratings [8] - Analyst Scott Devitt from Wedbush maintains an outperform rating for Sea stock despite concerns over near-term e-commerce margins due to increased competition [5]