Shares of e-commerce and gaming company Sea Limited (NYSE:SE) jumped 5.85% in the morning session after the company declared a 5% pay raise for most employees starting July. The market has been scrutinizing the company's profit potential, and today's move could be a signal to investors that it is confident in its operating leverage potential over time. In the previous quarter, Sea reported strong operating profits, with analysts projecting that the trend is set to continue this quarter.
What is the market telling us:
Sea Limited's shares are very volatile and over the last year have had moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
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