DBS believes that TikTok Shop would have to prove that its e-commerce is a separate business from its social media, with no data sharing from the backend as well as possibly a clear source of funding for e-commerce losses — which was funded earlier by advertising business on its social media app.
DBS Group Research analysts have kept “buy” on Sea with a higher target price of US$78 ($107) from US$66 previously after Indonesia bans e-commerce transactions on social media platforms.
Indonesia’s move takes effect immediately from Sept 27, aiming at protecting offline merchants and marketplaces as predatory pricing on social media platforms is threatening small and medium-sized enterprises.
