Latest news with #SeaLimited
Yahoo
3 days ago
- Business
- Yahoo
Sands Capital Technology Innovators Fund is Maintaining Confidence in Sea Limited (SE)
Sands Capital, an investment management company, released its 'Sands Capital Technology Innovators Fund' Q1 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund's top 5 holdings to know more about its best picks for 2025. In its first-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Sea Limited (NYSE:SE). Sea Limited (NYSE:SE) engages in the digital entertainment, e-commerce, and digital financial service businesses. The one-month return of Sea Limited (NYSE:SE) was 23.27%, and its shares gained 142.75% of their value over the last 52 weeks. On May 27, 2025, Sea Limited (NYSE:SE) stock closed at $165.24 per share with a market capitalization of $97.83 billion. Sands Capital Technology Innovators Fund stated the following regarding Sea Limited (NYSE:SE) in its Q1 2025 investor letter: "Sea Limited (NYSE:SE) is an internet business in Southeast Asia that operates leading platforms for video games, ecommerce, and digital financial services. The business reported its fifth consecutive beat-and-raise quarter, with Shopee (ecommerce) growing gross merchandise volume 24 percent year-over-year while delivering positive EBITDA margin. 2025 guidance points to inflections across all three business units—ecommerce, digital financial services, and gaming—each expected to generate approximately $1 billion in EBITDA. We raised our long-term estimates, including Shopee margin and valuation assumptions, and now expect combined EBITDA to triple by 2029. Improved investor communication has, in our view, helped dampen volatility around earnings announcements while attracting long-term institutional investors. Looking ahead, we believe the company is more in control of its destiny and entering a phase of meaningful earnings acceleration, and we have higher confidence in our long-term earnings estimates." A person livestreaming their gameplay on a mobile device with integrated payment options. Sea Limited (NYSE:SE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge fund portfolios held Sea Limited (NYSE:SE) at the end of the first quarter compared to 86 in the previous quarter. Sea Limited's (NYSE:SE) total revenue increased 30% year-on-year to $4.8 billion in the first quarter of 2025. While we acknowledge the potential of Sea Limited (NYSE:SE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Sea Limited (NYSE:SE) and shared the list of best performing large cap stocks so far in 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
What Makes Sea Limited (SE) a Growing Company?
SaltLight Capital, an investment management company, has released its 'SaltLight SNN Worldwide Flexible FR Fund' Q1 2025 investor letter. A copy of the letter can be downloaded here. The Fund generated a return of +2.70% in the first quarter of 2025. Although short-term market fluctuations often attract attention, the firm focuses on the long-term vision for 2030. While volatility can be uncomfortable, it also offers opportunities to invest in excellent businesses at attractive prices. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, SaltLight Capital highlighted stocks such as Sea Limited (NYSE:SE). Sea Limited (NYSE:SE) engages in the digital entertainment, e-commerce, and digital financial service businesses. The one-month return of Sea Limited (NYSE:SE) was 23.27%, and its shares gained 142.75% of their value over the last 52 weeks. On May 27, 2025, Sea Limited (NYSE:SE) stock closed at $165.24 per share with a market capitalization of $97.83 billion. SaltLight Capital stated the following regarding Sea Limited (NYSE:SE) in its Q1 2025 investor letter: "Two years ago, in our 3Q23 letter, we made the case that we thought our e-commerce investments would start to show higher margins. At the time, we hypothesised that advertising would be the tool to do that. Back then, we wrote: 'In many cases, a business with a sufficiently large customer base can have a low margin core product and then monetise it with high-margin advertising. Digital advertising generates high incremental margins (as high as the ~80% level). The low margin product can almost become the customer acquisition cost, and the 'real' business becomes advertising. This strategy has proven effective across a broad spectrum of industries, from e-commerce at Amazon, MercadoLibre, and Shopee' A person livestreaming their gameplay on a mobile device with integrated payment options. Sea Limited (NYSE:SE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge fund portfolios held Sea Limited (NYSE:SE) at the end of the first quarter compared to 86 in the previous quarter. Sea Limited's (NYSE:SE) total revenue increased 30% year-on-year to $4.8 billion in the first quarter of 2025. While we acknowledge the potential of Sea Limited (NYSE:SE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Sea Limited (NYSE:SE) and shared the list of best performing large cap stocks so far in 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
All Aboard the Sea Limited Stock (SE) Rally
Since reaching its lowest point in early 2024, Sea Limited's (SE) stock has experienced a consistent upward trajectory. This positive performance aligns with the company's strategic efforts over the past few years to reverse negative cash flows, accelerate revenue growth, and enhance operational efficiency, contributing to steadily improving operating margins. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Sea Limited's Q1 results reaffirmed its positive momentum, setting a strong tone for the start of 2025. Management reinforced this trajectory with confident forward guidance, which was well-received by the market and helped sustain bullish sentiment. However, given the stock's significant gains and the progress already reflected in its valuation, much of the current optimism appears to be priced in. That said, Sea's underlying fundamentals and long-term growth prospects continue to support a constructive investment case. While the upside potential may now be more moderate, I maintain a cautiously bullish outlook on SE. For those less familiar, Sea Limited is widely seen as the leading tech conglomerate in Southeast Asia. It dominates the e-commerce space through its Shopee platform, expands rapidly in fintech via its Monee division, and maintains a strong presence in gaming with hits like Free Fire under its Garena segment. Sea's stock has performed incredibly well, climbing from around $71 per share over the past year to recent highs near $160. The company's strong revenue growth has been a key driver behind this surge. After slowing down in 2023 and early 2024, Sea has reaccelerated its growth over several consecutive quarters, from just 4.8% year-over-year to rates between 23% and 36% last year. This rebound has been led by Shopee, which had been losing momentum but has regained market share in various Southeast Asian countries, especially in Latin America, where it's now the second-largest player. Strategic investments in logistics and a more profitable product mix have also played a significant role in driving this turnaround. Beyond top-line performance, the company has also turned profitable over the past two years, maintaining positive operating margins for multiple quarters. Back in 2022, Sea's operating margin was around -15%. That figure has improved to about 5% over the last twelve months, thanks to tighter cost control, lower customer acquisition costs, and a focus on expanding in higher-margin markets. Cash flow from operations has been even more impressive, reaching 19% of revenue over the trailing twelve months—a strong indicator of financial health, especially for a company operating in capital-heavy industries like e-commerce and digital finance. Two weeks ago, Sea Limited reported its Q1 earnings, and they definitely helped confirm the bullish momentum behind the stock's massive rally over the past year. The headline was a 30% year-over-year jump in revenue to $4.84 billion, but even more impressive was the GAAP net income of $410.8 million—a major turnaround from a $23 million loss in the same quarter last year. Shopee was the standout performer, generating $3.5 billion in revenue—a 28% year-over-year increase—fueled by 21% growth in gross merchandise volume (GMV), improved take rates, and enhanced advertising monetization. Core marketplace revenue rose by 39%, indicating higher transaction volumes and increased profitability per transaction. Notably, Shopee's significant investment in logistics is showing strong returns, with EBITDA improving from a $22 million loss in the same quarter last year to a $264 million profit this quarter. But Sea Limited isn't just about Shopee. The fintech arm, Monee, also showed strong momentum with revenues up 58% year-over-year to $787.1 million, and its user base growing by 50% to reach 28 million. If that wasn't enough, after struggling for several quarters, Garena delivered a solid comeback, with bookings of $775.4 million (up 51% YoY) and adjusted EBITDA rising 57% to $458.2 million. Overall, it was a stellar quarter across the board. In addition to the strong revenue and margin improvements, Sea also showed healthy cash generation and a rock-solid balance sheet. Unlike in 2022, when it was burning cash, the company now holds $8.6 billion in cash and short-term investments, with no near-term liquidity concerns in sight. The solid guidance from management is more important than just the reassuring quarterly numbers, especially on the bottom line. With a strong start to the year, CEO Forrest Li expressed confidence in hitting their full-year targets. Management expects robust double-digit growth across key segments in 2025, and analysts have taken notice, raising EPS growth expectations by 6% for FY2025 and 5% for FY2026 after Q1 results. That said, when we look at the stock's valuation after its huge run-up, some caution is warranted. Sea Limited's forward price-to-sales ratio is now sitting at 4.6x—the highest it's been in the past three years. That's almost double the average of 2.6x during that time and well above the 1.2x multiple seen at the start of 2024. Of course, high valuations can still be justified if margins are improving and long-term profitability is clearly on the horizon, which does seem to be the case here. That's the key reason investors are willing to pay a premium today. So, I wouldn't say the stock is overvalued because it's trading near its historical highs. But with less of a margin of safety, the upside could be more limited from here, unless the company continues to deliver stronger growth to match these higher expectations. Wall Street sentiment toward Sea Limited remains largely positive. Of the 16 analysts who have issued ratings over the past three months, 12 recommend the stock as a Buy, while four have assigned a Hold rating. However, the potential upside appears relatively limited at current levels. SE's average price target of $171.63 implies a modest 4.8% increase from the current share price. Sea Limited offers compelling support for a strong, long-term bullish outlook. Robust revenue growth—driven primarily by Shopee's expansion—along with solid performance from Monee and a Garena recovery, reflects a well-diversified and strengthening business. These gains, improving margins, and a healthy cash position contribute to a promising overall picture. While valuation multiples appear elevated and may limit short—to medium-term upside following the stock's strong rally over the past year, the momentum remains positive. I maintain a cautiously optimistic long-term view on SE, as its premium valuation is arguably justified by its consistent progress toward sustainable profitability. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
5 days ago
- Business
- Business Insider
All Aboard the Sea Limited Stock (SE) Rally
Since reaching its lowest point in early 2024, Sea Limited's (SE) stock has experienced a consistent upward trajectory. This positive performance aligns with the company's strategic efforts over the past few years to reverse negative cash flows, accelerate revenue growth, and enhance operational efficiency, contributing to steadily improving operating margins. Confident Investing Starts Here: Sea Limited's Q1 results reaffirmed its positive momentum, setting a strong tone for the start of 2025. Management reinforced this trajectory with confident forward guidance, which was well-received by the market and helped sustain bullish sentiment. However, given the stock's significant gains and the progress already reflected in its valuation, much of the current optimism appears to be priced in. That said, Sea's underlying fundamentals and long-term growth prospects continue to support a constructive investment case. While the upside potential may now be more moderate, I maintain a cautiously bullish outlook on SE. Shopee's Comeback and Sea's Rising Tide For those less familiar, Sea Limited is widely seen as the leading tech conglomerate in Southeast Asia. It dominates the e-commerce space through its Shopee platform, expands rapidly in fintech via its Monee division, and maintains a strong presence in gaming with hits like Free Fire under its Garena segment. Sea's stock has performed incredibly well, climbing from around $71 per share over the past year to recent highs near $160. The company's strong revenue growth has been a key driver behind this surge. After slowing down in 2023 and early 2024, Sea has reaccelerated its growth over several consecutive quarters, from just 4.8% year-over-year to rates between 23% and 36% last year. This rebound has been led by Shopee, which had been losing momentum but has regained market share in various Southeast Asian countries, especially in Latin America, where it's now the second-largest player. Strategic investments in logistics and a more profitable product mix have also played a significant role in driving this turnaround. Beyond top-line performance, the company has also turned profitable over the past two years, maintaining positive operating margins for multiple quarters. Back in 2022, Sea's operating margin was around -15%. That figure has improved to about 5% over the last twelve months, thanks to tighter cost control, lower customer acquisition costs, and a focus on expanding in higher-margin markets. Cash flow from operations has been even more impressive, reaching 19% of revenue over the trailing twelve months—a strong indicator of financial health, especially for a company operating in capital-heavy industries like e-commerce and digital finance. Mighty Quarter Fuels Sea's Momentum Two weeks ago, Sea Limited reported its Q1 earnings, and they definitely helped confirm the bullish momentum behind the stock's massive rally over the past year. The headline was a 30% year-over-year jump in revenue to $4.84 billion, but even more impressive was the GAAP net income of $410.8 million—a major turnaround from a $23 million loss in the same quarter last year. Shopee was the standout performer, generating $3.5 billion in revenue—a 28% year-over-year increase—fueled by 21% growth in gross merchandise volume (GMV), improved take rates, and enhanced advertising monetization. Core marketplace revenue rose by 39%, indicating higher transaction volumes and increased profitability per transaction. Notably, Shopee's significant investment in logistics is showing strong returns, with EBITDA improving from a $22 million loss in the same quarter last year to a $264 million profit this quarter. But Sea Limited isn't just about Shopee. The fintech arm, Monee, also showed strong momentum with revenues up 58% year-over-year to $787.1 million, and its user base growing by 50% to reach 28 million. If that wasn't enough, after struggling for several quarters, Garena delivered a solid comeback, with bookings of $775.4 million (up 51% YoY) and adjusted EBITDA rising 57% to $458.2 million. Overall, it was a stellar quarter across the board. In addition to the strong revenue and margin improvements, Sea also showed healthy cash generation and a rock-solid balance sheet. Unlike in 2022, when it was burning cash, the company now holds $8.6 billion in cash and short-term investments, with no near-term liquidity concerns in sight. High Hopes and High Multiples The solid guidance from management is more important than just the reassuring quarterly numbers, especially on the bottom line. With a strong start to the year, CEO Forrest Li expressed confidence in hitting their full-year targets. Management expects robust double-digit growth across key segments in 2025, and analysts have taken notice, raising EPS growth expectations by 6% for FY2025 and 5% for FY2026 after Q1 results. That said, when we look at the stock's valuation after its huge run-up, some caution is warranted. Sea Limited's forward price-to-sales ratio is now sitting at 4.6x—the highest it's been in the past three years. That's almost double the average of 2.6x during that time and well above the 1.2x multiple seen at the start of 2024. Of course, high valuations can still be justified if margins are improving and long-term profitability is clearly on the horizon, which does seem to be the case here. That's the key reason investors are willing to pay a premium today. So, I wouldn't say the stock is overvalued because it's trading near its historical highs. But with less of a margin of safety, the upside could be more limited from here, unless the company continues to deliver stronger growth to match these higher expectations. Is SE Stock a Buy or Sell? Wall Street sentiment toward Sea Limited remains largely positive. Of the 16 analysts who have issued ratings over the past three months, 12 recommend the stock as a Buy, while four have assigned a Hold rating. However, the potential upside appears relatively limited at current levels. SE's average price target of $171.63 implies a modest 4.8% increase from the current share price. Plenty of Wind in the Sails, Just Mind the Price Tag Sea Limited offers compelling support for a strong, long-term bullish outlook. Robust revenue growth—driven primarily by Shopee's expansion—along with solid performance from Monee and a Garena recovery, reflects a well-diversified and strengthening business. These gains, improving margins, and a healthy cash position contribute to a promising overall picture. While valuation multiples appear elevated and may limit short—to medium-term upside following the stock's strong rally over the past year, the momentum remains positive.
Globe and Mail
23-05-2025
- Business
- Globe and Mail
SE Jumps 35% in a Month: Should Investors Hold On to the Stock?
Sea Limited 's SE shares have rallied 35.5% over the past month, significantly outperforming the Zacks Computer and Technology sector's return of 15.5% and the 20.5% rise in the Zacks Internet Software industry. SE has outperformed its industry peers, including HubSpot HUBS, Paylocity Holding PCTY and Atlassian TEAM. Over the same time frame, shares of HubSpot, Paylocity Holding and Atlassian have gained 9.8%, 6.7% and 0.4%, respectively. The upward momentum in Sea Limited's share price reflects its outstanding first-quarter 2025 results, with revenues rising 30% year over year to $4.8 billion. Growth and profitability gains were evident across all major segments, including e-commerce (Shopee), digital financial services (Monee) and digital entertainment (Garena). Also, an impressive $410.8-million net income marked a striking comeback from a loss in the corresponding period last year, reflecting its operational strength. Despite a year-over-year upsurge of 309.5% to 86 cents per share, Sea Limited's bottom line missed the Zacks Consensus Estimate by 7.53%. SE Growth Driven by Core Segment Strength Shopee, Sea Limited's e-commerce platform, reported a significant turnaround in profitability in the first quarter of 2025. The segment achieved revenues of $3.5 billion, marking a 28.3% year-over-year increase. This growth was driven by a 20.5% rise in gross orders and a 21.5% increase in Gross Merchandise Value ('GMV'). Adjusted EBITDA reached $264.4 million from a prior loss of 21.7 million, driven by higher take rates, cost optimization and competitive pricing. The platform remains on track to meet its 20% full-year GMV growth target with improving profitability. The company's digital financial services division, rebranded as Monee, demonstrated impressive growth in the first quarter of 2025. The segment reported revenues of $787.1 million, up 57.6% year over year. This rally was primarily attributed to the expansion of its consumer and SME credit business, with loans outstanding surging 76.5% to $5.8 billion. Garena, Sea Limited's digital entertainment arm, experienced a resurgence in the first quarter of 2025, driven by the success of its flagship game, Free Fire. Bookings for the segment reached $775.4 million, a 51.4% year-over-year increase. Garena's revenue grew 8.2% year over year to $495.6 million, while adjusted EBITDA rose 56.8% to $458.2 million. The segment also saw a 32.2% increase in quarterly paying users and an 11.3% rise in quarterly active users to 661.8 million. Garena's collaboration with Naruto Shippuden contributed to increased user engagement, bringing average daily activity close to the pandemic-era highs. Earnings Estimate Revision for SE Trends Upward The Zacks Consensus Estimate for SE's second-quarter 2025 revenues is pegged at $5.08 billion, indicating a 29.87% year-over-year increase. The consensus mark for second-quarter earnings is pegged at 96 cents per share, which has been unchanged over the past 30 days. The estimate indicates a 108.7% upsurge from the figure reported in the year-ago quarter. For 2025, the Zacks Consensus Estimate for revenues is pegged at $22.28 billion, suggesting 31.53% year-over-year growth. The consensus mark for 2025 earnings is pegged at $3.94 per share, unchanged over the past 30 days. The estimate indicates a 134.52% jump from 2024's reported figure. Everything Not So Rosy for SE The launch of TikTok Shop in Brazil in May 2025 introduced a formidable competitor in the e-commerce landscape. Offering integrated shopping experiences and aggressive incentives like zero seller fees and free shipping, TikTok Shop is poised to rapidly capture market share, challenging Shopee's position in the region. In Brazil, Shopee Live faces slow uptake due to early-stage market conditions. Shopee Live is struggling to grow in Brazil due to limited awareness of live shopping and a lack of local content creators. Sea Limited is expected to invest in building this ecosystem, which can affect profitability in the near term. Conclusion: Hold SE Stock for Now Sea Limited's strong first-quarter performance, marked by solid revenue growth, a return to profitability and robust segment expansion, is encouraging. However, intensifying competition is creating headwinds. SE currently carries Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sea Limited Sponsored ADR (SE): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report Paylocity Holding Corporation (PCTY): Free Stock Analysis Report Atlassian Corporation PLC (TEAM): Free Stock Analysis Report
