Sea (SE) and Microsoft (MSFT), PAR Technology (PAR) Shares Drop, Here's What You Should Know
What Occurred?
Stocks experienced a decline in the afternoon trading session following China's decision to impose a 34% tariff on all U.S. imports amidst rising trade war tensions. This action was a response to the Trump administration's announcement of "reciprocal tariffs," with potential levies on Chinese products reaching up to 50%. This move was just the initial step in a series of expected retaliatory actions that raised concerns among investors. The tariffs were perceived as a significant risk to global trade dynamics, capable of impeding economic growth and increasing consumer costs.
The stock market reacts swiftly to news, often resulting in significant price declines that can offer opportunities to purchase top-quality stocks.
Particularly, the following stocks were affected:
Focusing on Sea (SE)
Sea's stock tends to be volatile and has seen 12 movements exceeding 5% in the past year. However, such substantial fluctuations are rare for Sea and suggest that this particular news had a profound impact on the market's view of the company.
The most notable movement occurred about five months ago when the stock surged by 16.2% following the company's strong performance in the third quarter of 2024, exceeding analysts' revenue and EBITDA projections. The EBITDA outperformance was partially attributed to reduced sales and marketing expenses compared to the previous year. This performance uplifted the shares, addressing concerns about Sea's marketing expenditures surpassing its revenue in previous years. Overall, that quarter had several positive aspects.
Although Sea has seen a 2.1% increase since the beginning of the year, with shares priced at $107.06, it remains 26.8% below its 52-week high of $146.31 recorded in March 2025. Investors who invested $1,000 in Sea's shares five years ago would now see an investment worth $2,390.
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