Analysts flag rising incentives, logistics, and marketing costs amid slower growth for Shopee’s gross merchandise value.
Sea Limited is set to report first-quarter earnings amid heightened concerns over rising costs and margin pressures. Higher spending on incentives, logistics, and marketing has weighed on profitability despite revenue growth, according to recent analysis.
The company faces a slower growth outlook for Shopee’s annual gross merchandise value, alongside intensifying competition and thinner margins. These factors have contributed to a sharp stock selloff, though some argue the valuation now presents an attractive risk-reward balance.
Market sentiment remains cautious as investors assess whether cost controls can offset ongoing competitive and operational challenges.