Winners and Losers: Sony, Alibaba, and Sea

Throughout 2024, Alibaba (BABA), an e-commerce giant that is losing market share to PDD (PDD), traded in a range. The stock bottomed at $66.63 in April and quickly broke out. BABA stock spiked at $85 before closing at $79.51, down 6.02% yesterday.

Alibaba reported a 96% slump in net income, to RMB919M ($127M). Its investments in public companies led to a net loss. It posted an 86% Y/Y drop in net income attributable to shareholders.

The cloud intelligence unit is not a growth catalyst, either. Revenue grew by 3% Y/Y. To boost profitability, Alibaba will reduce low-margin project-based contracts.
BABA stock is today’s loser.

Winner: Sony (SONY)

Sony Group bounced back from a $75.11 52-week low on Tuesday. The entertainment firm posted revenue growing by 11.5% Y/Y. It will strengthen shareholder return by reducing its capital expenditure, which increases its cash flow. Sony will focus on growth in its Image & Sensor Solutions unit in particular. The segment will grow by at least 10% annually.

Singapore-based Sea Ltd. (SE) is a winning pick. The firm posted Q1 revenue of $3.73 billion (+22.7% Y/Y) for a GAAP EPS loss of 4 cents a share.

Sea requires price competitiveness, strengthening content ecosystems, and improving service quality to turn its business prospects around.

Sea will differentiate its e-commerce unit by first creating value for both its sellers and buyers.

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