What Happened?
A number of stocks fell in the afternoon session after President Trump threatened to impose "massive" new tariffs on Chinese imports, reigniting trade war fears.
The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-rich Nasdaq Composite fell 1.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies. The sell-off marked a significant reversal from the morning's slight gains, highlighting the market's sensitivity to geopolitical trade developments.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Online Marketplace company Shutterstock (NYSE: SSTK) fell 4%. Is now the time to buy Shutterstock? Access our full analysis report here, it’s free for active Edge members.
- Financial Technology company Remitly (NASDAQ: RELY) fell 3%. Is now the time to buy Remitly? Access our full analysis report here, it’s free for active Edge members.
- Online Marketplace company Cars.com (NYSE: CARS) fell 3.4%. Is now the time to buy Cars.com? Access our full analysis report here, it’s free for active Edge members.
- Online Marketplace company Sea (NYSE: SE) fell 4.2%. Is now the time to buy Sea? Access our full analysis report here, it’s free for active Edge members.
- Online Retail company Coupang (NYSE: CPNG) fell 3.1%. Is now the time to buy Coupang? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Sea (SE)
Sea’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 29 days ago when the stock gained 2.6% as several Wall Street analysts raised their price targets on the stock, citing strong growth prospects across its e-commerce, gaming, and fintech businesses. JPMorgan increased its price target to $230 from $208, maintaining an Overweight rating. The bank's optimism stems from the potential of Sea's e-commerce platform, Shopee, to improve monetization, reinvest in growth, and benefit from lower logistics costs. Similarly, Maybank Securities lifted its target to $238, noting that Shopee recently raised commissions with minimal pushback, signaling a more rational competitive landscape.
Adding to the positive sentiment, DBS Group Research set a new target of $241. DBS highlighted the gaming division as a key driver, with management expecting bookings to grow over 30% in fiscal year 2025, alongside impressive growth in the company's fintech loan book.
Sea is up 72.5% since the beginning of the year, and at $180.91 per share, it is trading close to its 52-week high of $196.50 from September 2025. Investors who bought $1,000 worth of Sea’s shares 5 years ago would now be looking at an investment worth $1,082.
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