What do you think about the trend of their EPS in the next few quarters? They mentioned that they want to grow with profitability, but I'm wondering how it would improve given the stiff competition
I believe EPS is likely to trend upwards but with some fluctuations quarter to quarter. I don’t actually think competition is very stiff, as management shared during the call yesterday, the competitive landscape has been steady. If we piece that together with the fact Shopee is growing 28% off this humongous base, it’s fair to say they’re probably still gaining market share.
The key to watch here is take rates. That is the measure of profitability, bottom-line numbers are skewed by reinvestments into VIP program, fulfilment etc.
What do you think about the trend of their EPS in the next few quarters? They mentioned that they want to grow with profitability, but I'm wondering how it would improve given the stiff competition
I believe EPS is likely to trend upwards but with some fluctuations quarter to quarter. I don’t actually think competition is very stiff, as management shared during the call yesterday, the competitive landscape has been steady. If we piece that together with the fact Shopee is growing 28% off this humongous base, it’s fair to say they’re probably still gaining market share.
The key to watch here is take rates. That is the measure of profitability, bottom-line numbers are skewed by reinvestments into VIP program, fulfilment etc.
Great take, thanks