Stock of the Day

SEA (SE)

$165.42

-$4.98 (-2.9%)

Market Cap: $98.00B

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services.

The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.

SEA Bull Case

Here are some ways that investors could benefit from investing in Sea Limited:

• The stock recently reached a new 12-month high, trading around $168.18, indicating strong market performance and investor confidence.
• Sea Limited has shown significant revenue growth, with a reported increase of approximately 29.6% compared to the same quarter last year, suggesting robust business expansion.
• Analysts have a consensus rating of "Moderate Buy" for Sea Limited, with several upgrades from various brokerages, reflecting positive sentiment in the market.
• The company has a relatively low debt-to-equity ratio of 0.36, indicating a strong balance sheet and lower financial risk, which is appealing to investors.
• Recent analyst reports highlight the strength of Sea Limited's e-commerce and fintech sectors, which are key growth areas in the current market landscape.

SEA Bear Case

Investors should be bearish about investing in Sea Limited for these reasons:

• Despite revenue growth, the company reported earnings per share (EPS) of $0.65, which missed consensus estimates, indicating potential challenges in profitability.
• The stock has a high price-to-earnings (P/E) ratio of 1,126.87, suggesting that it may be overvalued compared to its earnings, which could deter value-focused investors.
• Market volatility could impact Sea Limited's stock performance, as indicated by its beta of 1.70, which suggests higher sensitivity to market movements.
• There are mixed ratings from analysts, with some downgrading the stock from "buy" to "neutral," indicating uncertainty about future performance.
• Investors may be concerned about the competitive landscape in the e-commerce and fintech sectors, which could affect Sea Limited's market share and growth potential.

Recent News

• Gran Tierra Energy Announces Sale of Gran Tierra North Sea Limited | GTE Stock News (gurufocus.com)
• Gran Tierra Energy Announces Sale of Gran Tierra North Sea Limited (financialpost.com)