Core Insights - Sea Limited reported strong financial results for Q3 2025, with total GAAP revenue reaching US$6.0 billion, a 38.3% increase year-on-year [7][11] - The company aims to sustain high and profitable growth across its three core businesses: e-commerce, digital financial services, and digital entertainment [2][3] E-commerce - Shopee achieved record-setting quarterly GMV, gross order volume, and revenue, with a projected full-year GMV growth of over 25% for 2025 [3] - E-commerce GAAP revenue increased by 36.6% to US$3.8 billion, driven by GMV growth [16] - Gross orders totaled 3.6 billion, up 28.4% year-on-year, with total GMV at US$32.2 billion, also reflecting a 28.4% increase [7] Digital Financial Services - Monee reported a GAAP revenue increase of 60.8% to US$989.9 million, primarily due to growth in the consumer and SME credit business [7][16] - The principal outstanding for consumer and SME loans reached US$7.9 billion, a 69.8% increase year-on-year [7] - Adjusted EBITDA for digital financial services was US$258.3 million, up 37.5% year-on-year [7] Digital Entertainment - Garena's bookings increased by 51% year-on-year, marking the best quarter since 2021, with a strong performance driven by campaigns for Free Fire [3][7] - Digital entertainment GAAP revenue rose by 31.2% to US$653.0 million, attributed to an increase in active users and deeper paying user penetration [16] - The segment is on track to achieve over 30% year-on-year growth in bookings for 2025 [3] Financial Performance - Total gross profit for the quarter was US$2.6 billion, up 39.7% year-on-year [7] - Total adjusted EBITDA reached US$874.3 million, a 67.7% increase from the previous year [7] - Net income for Q3 2025 was US$375.0 million, compared to US$153.3 million in Q3 2024, reflecting a 144.6% increase [25][7] User Metrics - Quarterly active users reached 670.8 million, a 6.7% increase year-on-year, while quarterly paying users grew by 31.2% to 65.9 million [10] - The average bookings per user increased to US$1.25 from US$0.89 in the previous year [10]

Core Insights - U.S. stock futures are trading mixed, indicating varied investor sentiment in the market [1] Company Summaries - Sea Ltd. (NYSE:SE) is expected to report quarterly earnings of 77 cents per share on revenue of $5.65 billion, with shares rising 2.7% to $159.20 in after-hours trading [2] - Outset Medical Inc. (NASDAQ:OM) reported a quarterly loss of 69 cents per share, missing the consensus estimate of 66 cents, and sales of $29.431 million, below the expected $30.880 million, leading to a 23.4% drop in shares to $9.25 [2] - Amdocs Ltd. (NASDAQ:DOX) is anticipated to post earnings of $1.82 per share on revenue of $1.15 billion, with shares slightly increasing by 0.1% to $85.61 in after-hours trading [2] - LivePerson Inc. (NASDAQ:LPSN) exceeded expectations with its third-quarter results and raised its FY25 sales guidance to $235 million to $240 million, up from $230 million to $240 million, resulting in a 16.4% increase in shares to $6.10 [2] - Cae Inc. (NYSE:CAE) is expected to report earnings of 14 cents per share on revenue of $823.11 million, with shares rising 0.1% to close at $27.22 [2]

Core Insights - Sea Limited is a significant player in the digital economy, operating through three main segments: Shopee, SeaMoney, and Garena [1] - The company is preparing to release its third-quarter earnings on November 11, 2025, with analysts expecting an EPS of $1.03, a 90.7% increase from the previous year, and projected revenue of $5.97 billion, reflecting a 39.9% year-over-year growth [2][6] Shopee Segment - Shopee has achieved a 25% increase in Gross Merchandise Value (GMV) and maintains market leadership in Brazil, contributing significantly to the company's growth [2][6] SeaMoney Segment - SeaMoney's loan book has expanded by 90%, with stable credit quality, which is expected to drive a 60% year-over-year revenue increase for this segment [3][6] Garena Segment - Garena continues to contribute to revenue momentum with over 100 million daily users, although it faces margin pressure and risks related to user stability, particularly due to reliance on the game Free Fire [4] Historical Performance - Sea Limited has missed the Zacks Consensus Estimate in the last four quarters, with an average negative surprise of 12.14%, and the consensus EPS estimate has been revised downwards by 1.4% over the past 30 days [5]

Earnings Reports Overview - The earnings season is slowing down, but several retail-favorite companies are set to report this week [1] - Key companies reporting include Barrick Mining Corp., Plug Power Inc., Oklo Inc., Cisco Systems Inc., Walt Disney Co., and Applied Materials Inc. [2][3][5][10][11] Company-Specific Insights - Barrick Mining Corp. reported its third-quarter results before the market opened on November 10 [2] - Plug Power Inc. is expected to report losses of 12 cents per share and revenue of $179.54 million, having missed earnings expectations for the last 18 quarters [3] - Oklo Inc. is anticipated to report losses of 13 cents per share and revenue of $17.01 billion, with stock volatility noted ahead of the report [5] - Cisco Systems Inc. is expected to be a focal point for investors, particularly regarding management's guidance and updates on AI and cybersecurity business momentum [10] - Walt Disney Co. and JD.com Inc. will release earnings reports before the market opens on November 13 [11] - Applied Materials Inc. is set to release its Q4 results after the market closes on November 13 [11] Additional Companies Reporting - Other companies reporting this week include Workhorse Group Inc., Beyond Meat Inc., Microvision Inc., and Virgin Galactic Holdings Inc. [4][6][12]

Core Insights - Sea Limited (SE) is expected to report third-quarter 2025 results on November 11, with earnings estimated at $1.03 per share, a decrease of 7.2% from the previous 30 days, compared to 54 cents per share in the same quarter last year. Revenue is projected at $5.97 billion, indicating a year-over-year growth of 39.90% [1][2]. Group 1: Performance Drivers - Shopee's sustained momentum is anticipated to positively impact Sea Limited's performance, with Gross Merchandise Value (GMV) growing 25% year-over-year in the first half of 2025, and continued growth expected into the third quarter. Shopee has achieved record quarters and remains the market leader in Brazil, marking its fifth anniversary with significant growth and profitability [3][8]. - SeaMoney's rapid loan book expansion, reaching approximately $6.9 billion with a nearly 90% year-over-year growth, is expected to support performance. The fintech arm maintains a stable 90-day non-performing loan ratio of around 1.0%, reflecting disciplined risk management and robust portfolio health [4][8]. - Garena's strong gaming performance, driven by multiple titles achieving double-digit growth and a massive global player base exceeding 100 million daily active users, is likely to enhance Sea Limited's results. Management has raised full-year bookings guidance to over 30% year-over-year, indicating confidence in sustained engagement and monetization [5][8]. Group 2: Financial Considerations - Sea Limited's focus on expansion in e-commerce and fintech has led to significantly higher operating expenditures, with sales and marketing expenses increasing nearly 30% year-over-year to about $1.0 billion. This aggressive investment strategy may pressure profitability in the upcoming quarter [6]. - The company's current Earnings ESP stands at -6.5% with a Zacks Rank of 3, indicating that the model does not predict an earnings beat this time [7][9].

Core Insights - The article emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior [1] - It highlights the significance of central bank policies, sector rotation, and sentiment dynamics in constructing actionable investment strategies [1] Group 1: Professional Background - The author has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1] - The professional background includes advising on and implementing multi-asset strategies, with a strong emphasis on equities and derivatives [1] Group 2: Investment Philosophy - The goal of sharing insights is to make investing accessible, inspiring, and empowering for all investors [1] - The article encourages collaboration among investors to build confidence in long-term investing [1]

Group 1 - The recommendation to buy shares in Sea Limited (SE) is reiterated following studies to prepare for the earnings preview [1] - This article continues the initial coverage thesis published on July 3, 2024, indicating ongoing analysis and interest in the company [1] Group 2 - The analyst has no current stock, option, or similar derivative position in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2]

Group 1 - The recommendation to buy shares in Sea Limited (SE) is reiterated following studies to prepare for the earnings preview [1] - This article continues the initial coverage thesis published on July 3, 2024, indicating ongoing analysis and research on the company [1] - The analyst has over 5 years of experience in equity analysis in Latin America, providing in-depth research and insights for informed investment decisions [1]

Core Insights - MercadoLibre's (MELI) third-quarter 2025 earnings showed strong revenue growth but missed earnings expectations, indicating underlying issues despite a 39.5% year-over-year revenue increase to $7.41 billion, surpassing estimates by 2.15% [1] - Earnings per share of $8.32 fell short of consensus by 11.77%, highlighting concerns over profitability amid competitive pressures and margin erosion [1][9] Revenue and Growth - Revenue surged 39.5% year over year to $7.41 billion, driven by aggressive scaling in commerce and fintech [1][2] - Operating income increased by 30% year over year to $724 million, but operating margin decreased to 9.8% from 10.5% in the previous year [2] Margin and Cost Pressures - Brazil's reduction of the free-shipping threshold from R$79 to R$19 led to a 42% increase in items sold and a 34% rise in gross merchandise volume, but also inflated fulfillment and logistics costs, resulting in a decline in Brazil's direct contribution margin [3] - Gross margin contracted to 49% from 52% year over year due to higher shipping subsidies and increased infrastructure costs [3] Regional Challenges - In Argentina, revenue growth of 39.5% in U.S. dollars masked a 97% increase in local currency, primarily driven by inflation rather than real consumption [4] - Peso depreciation and rising funding costs negatively impacted profitability, with foreign-exchange losses more than doubling from the previous year [4] Competitive Landscape - Amazon's expansion in Brazil and Mexico poses a significant threat to MELI's logistics advantage, as it can sustain free-shipping incentives longer and at a lower cost [6] - Nubank is emerging as a major competitor in fintech, eroding MELI's dominance in digital payments and consumer credit, with over 100 million users and a low-cost model [7] - Sea Limited's Shopee is increasing pressure on MELI's marketplace through aggressive discounts and subsidies, impacting MELI's take rates [8] Valuation and Market Performance - MELI's stock has risen 35.6% year-to-date, outpacing industry averages, but this growth may not be sustainable without improvements in profitability [10] - Trading at a price-to-earnings ratio of 38.44X, MELI is at a premium compared to industry and sector averages, which may be difficult to justify given ongoing margin compression [12] Conclusion - Despite being a regional leader, MELI's third-quarter results reveal a growing gap between growth and profitability, with compressing margins and increasing competition [14] - The stock's premium valuation and recent performance suggest that current optimism may not align with underlying fundamentals, indicating potential downside risks [14]

Core Insights - The article highlights the significant growth potential in the Brazilian e-commerce market, with a projected market size exceeding $70 billion by 2025 and an annual growth rate of over 20% [4][5]. - Brazilian consumers are increasingly favoring Chinese products, with 42% of online shoppers perceiving them as cost-effective, a substantial increase from 13% five years ago [5]. - Despite the promising market conditions, challenges such as complex taxation, logistics issues, and high risks remain prevalent for Chinese businesses entering Brazil [6][12]. Group 1: Market Overview - Brazil's e-commerce penetration rate is approximately 13%, indicating substantial room for growth compared to global averages [4]. - The influx of Chinese tourists to Brazil has increased by 23.5% in the first half of the year, suggesting a growing interest in the market [4]. - The Brazilian e-commerce landscape is still in its early stages, presenting both opportunities and competitive challenges for Chinese platforms [8]. Group 2: Competitive Landscape - Temu has rapidly gained market share in Brazil, achieving 409.7 million visits within 14 months of launch, surpassing competitors like Mercado Livre and Shopee [8][9]. - Mercado Livre remains the dominant player in the Brazilian market with an estimated GMV of approximately $25.9 billion for 2024, followed by Shopee and Amazon [10]. - Shopee's aggressive expansion strategy has led to a 54% increase in warehouse space within a year, positioning it as a significant competitor to Mercado Livre [21][22]. Group 3: Logistics Challenges - The logistics infrastructure in Brazil is uneven, with the southeastern region being well-developed while the northern and northeastern areas face significant challenges [15][16]. - Delivery times can vary greatly, with some products taking up to a week to arrive, complicating the e-commerce experience for consumers [14]. - Companies like Mercado Livre and Shopee are investing in regional distribution centers to improve delivery efficiency, particularly in underserved areas [17][24]. Group 4: Profitability and Risks - The Brazilian market offers high gross margins of 30%-40%, but the distance and logistical complexities can significantly impact profitability [27]. - New tax regulations effective August 1, 2024, will impose import duties on low-value packages, potentially affecting the cost structure for cross-border e-commerce [29]. - The competitive landscape is intensifying, with local and international players vying for market share, necessitating strategic adaptations from Chinese businesses [28][30].