Group 1 - Sea Limited (SE) has significantly outperformed the S&P 500 and likely every global index over the last three years, despite a sharp decline in 2022 and the first half of 2023 [1] - The analysis emphasizes the importance of high-quality companies that can maintain a competitive advantage and high levels of defensibility for long-term market outperformance [1]

Group 1 - The analyst has over a decade of experience researching various companies across different sectors, including commodities like oil, natural gas, gold, and copper, as well as technology firms such as Google and Nokia [1] - The analyst has transitioned from writing a personal blog to creating a value investing-focused YouTube channel, where extensive research on hundreds of companies has been conducted [1] - The analyst expresses a particular interest in covering metals and mining stocks, while also being comfortable with other industries like consumer discretionary/staples, REITs, and utilities [1]

Group 1: Company Overview - Sea Limited (NYSE:SE) is a Singapore-based consumer internet company that operates Shopee (e-commerce), Garena (digital entertainment), and SeaMoney (digital financial services) globally [5]. Group 2: Analyst Ratings and Price Targets - As of January 12, 2026, over 90% of analysts are bullish on Sea Limited, with a consensus price target of $197.00, indicating a potential upside of 51.70% [2]. - On January 2, 2025, Maybank upgraded Sea Limited from 'Hold' to 'Buy', setting a price target of $156, citing a more attractive risk-reward profile after a 36% decline in stock price since October 2025 [3]. - Wedbush lowered its price target for Sea Limited from $190 to $170 while maintaining an 'Outperform' rating, noting the internet sector's strong performance in 2025 [4]. Group 3: Market Position and Strategy - Maybank believes that most short-term headwinds are already priced in due to Sea Limited's aggressive investment in Shopee's VIP program and fulfillment network, which is expected to enhance its competitive position in Southeast Asia, accounting for approximately 75% of Shopee's gross merchandise value (GMV) [3]. - Wedbush's commentary highlights the anticipated greater dispersion in the internet sector for 2026 as investors consider factors like AI monetization and ongoing investment cycles [4].

Core Viewpoint - The article compares Amazon and Sea Limited as investment options, highlighting Amazon's established market presence versus Sea Limited's growth potential in emerging markets [1][2]. Amazon Overview - Amazon is a well-established company that has pioneered e-commerce and cloud computing, leading to a strong market position [2]. - Despite single-digit revenue growth in online sales, Amazon's subscription, third-party seller, and digital advertising segments show double-digit growth [3]. - Amazon Web Services (AWS) is a significant profit driver, contributing $33 billion of the $55 billion in operating income during the first nine months of 2025, despite only accounting for 18% of total revenue [4]. - The company's net income for the same period reached $56 billion, a 44% increase year-over-year [4]. - Amazon's capital expenditure over the last year was $120 billion, which may have impacted its stock performance, but it generated $15 billion in free cash flow, indicating strong financial health [5]. - Amazon's current market cap is $2.5 trillion, with a P/E ratio of 34, suggesting a relatively low valuation compared to historical levels [7]. Sea Limited Overview - Sea Limited, with a market cap of $78 billion, operates primarily in Southeast Asia, offering e-commerce through Shopee, gaming via Garena, and fintech services through Monee [8][9]. - The company reported nearly $1.2 billion in net income for the first three quarters of 2025, a significant increase from $207 million in the same period the previous year [10]. - Sea Limited's stock has increased by nearly 20% over the last year but has declined over one-third from its peak in September [10]. - The company has a gross margin of 44.92% and a P/E ratio of 54, indicating a premium valuation [12]. - Sea Limited's operations in developing markets present both growth opportunities and challenges, as average incomes in these regions lag behind developed countries [9]. Investment Considerations - For conservative investors, Amazon is seen as a safer choice due to its proven track record and market leadership in key industries [13]. - Risk-tolerant investors may find Sea Limited more appealing for potential long-term rewards, despite the uncertainties associated with developing markets [14][15]. - The choice between the two companies ultimately depends on individual risk tolerance and investment goals [15].

Sea Limited's 30-day performance gain of 1.06% reflects investor confidence despite a recent slight dip.The company has a projected stock price increase of 45.08%, with analysts setting a target price of $182.20, indicating significant growth potential.SE's strong Piotroski Score of 8 out of 9 underscores its solid financial health and operational efficiency.Sea Limited (NYSE: SE) is a prominent player in the digital entertainment, e-commerce, and digital financial services sectors, primarily operating in S ...

Core Insights - The gaming ETF GAMR is undergoing rebalancing as it approaches its tenth anniversary, with notable adjustments in its index weights [1][2] Group 1: ETF Overview - GAMR, the Amplify Video Game Leaders ETF, charges 59 basis points to track the VGAME VettaFi Video Game Leaders Index [1] - The fund has outperformed its ETF Database Category average over three and one year periods [1] Group 2: Investment Strategy - VGAME employs a market cap-weighted approach, using factors like liquidity, size, revenue, and listing to identify its investable universe [2] - The index categorizes investments into tiers based on market cap, with the top tier weighted around 10%, the second around 5%, and the third at 2.5% [2] Group 3: Recent Changes in Holdings - Advanced Micro Devices (AMD) saw its weight decrease from 14% to 9.5%, while Nvidia (NVDA) increased its weight from 10% to 10.6% [3] - Tencent Holdings (TCEHY) rose from third to second place, increasing by 0.2%, and Sea Ltd. (SE) increased its weight from 3% to 5.5% [4]

Core Viewpoint - Sea Limited (NYSE:SE) is considered one of the best stocks to buy for high returns in 2026, with recent upgrades from analysts indicating a positive outlook despite recent price declines [1][2]. Group 1: Analyst Upgrades and Price Targets - Hussaini Saifee from Maybank upgraded Sea Limited from Hold to Buy with a price target of $156 [1]. - Scott Devitt from Wedbush reiterated a Buy rating but lowered the price target from $190 to $170 [1]. Group 2: Stock Performance and Risks - The share price of Sea Limited has fallen more than 36% from its peak in October 2025, suggesting that most near-term risks have already been priced in [2]. - Despite the stock price decline, the long-term growth drivers for Sea Limited remain intact [2]. Group 3: Investment in E-commerce - Sea Limited continues to invest in its Shopee VIP programme fulfilment network, strengthening its position in the Southeast Asian e-commerce market, which accounts for approximately 75% of Shopee's GMV [3]. - Maybank noted that Sea Limited provides an attractive risk/reward profile at current levels [3]. Group 4: Company Overview - Sea Limited operates through three segments: e-commerce, digital financial services, and digital entertainment, with key platforms including Shopee, Garena, and SeaMoney [4].

Core View - Sea Limited (NYSE:SE) has been upgraded from Hold to Buy by Maybank, maintaining a price target of $156, indicating a positive outlook from analysts [1][2] Company Performance - The company's share price has declined from its 2025 high, which Maybank interprets as creating an attractive risk-reward scenario [2] - Wedbush has reduced its price target from $190 to $170 while maintaining an Outperform rating, noting that consumer internet stocks had an average return of 23% in 2025, outperforming the NASDAQ's 19% gain [3] Competitive Position - Sea Limited's ongoing investments in its VIP program and fulfillment are strengthening its competitive position in the ASEAN markets [2] - The company operates in three core areas: digital entertainment, e-commerce, and digital financial services, positioning itself as a global consumer internet company based in Singapore [4] Future Outlook - Analysts expect performance divergence in 2026 due to factors such as AV disruption, AI monetization, and the increasing adoption of agentic AI [4]

Group 1 - MercadoLibre Inc reported a significant increase in revenue, with a year-over-year growth of 31% to $2.5 billion in the last quarter [1] - Sea Ltd has shown resilience in its e-commerce segment, achieving a gross merchandise value (GMV) growth of 25% year-over-year, reaching $3.2 billion [1] - Uber Technologies Inc continues to expand its market share, with a 20% increase in total bookings, amounting to $30 billion in the last quarter [1] Group 2 - Coupang LLC has experienced a 15% rise in revenue, totaling $1.8 billion, driven by increased customer engagement and repeat purchases [1] - The overall market for e-commerce and ride-sharing services is projected to grow, with analysts estimating a compound annual growth rate (CAGR) of 15% over the next five years [1] - Competitive pressures are intensifying in the logistics and delivery sectors, prompting companies to innovate and enhance their service offerings [1]

Core Insights - TikTok Shop is experiencing rapid growth, with projections indicating 400 million active consumers by 2025 and a GMV approaching $100 billion, ranking fifth among global e-commerce platforms [1][2] - The platform utilizes an "interest e-commerce" model, focusing on content-driven discovery through short videos and live streaming, which has resonated well with consumers [1] - TikTok Shop has expanded into 17 global markets since its launch in 2021, including the US, Europe, Southeast Asia, and Latin America [1] Market Performance - TikTok Shop's GMV is expected to match eBay's by Q3 2025, with a projected GMV exceeding $25 billion during the 2025 Black Friday-Cyber Monday shopping season [2] - In the US, sales are forecasted to grow by 400% in 2024 and 108% in 2025, with a significant increase in consumer engagement during the Black Friday period [2][3] - The platform has seen a 40% contribution to GMV from short video sales in the US, with a high percentage of natural traffic reducing customer acquisition costs [3] Regional Growth - In Southeast Asia, TikTok Shop has quickly become the second-largest player, with a GMV growth of 2.7 times year-on-year during the 2025 "Double Twelve" shopping event [4] - The European market is also showing strong growth, with an expected increase of over 100% in 2025, and plans for further market expansion in 2026 [4] - In Brazil and Japan, TikTok Shop has reported impressive early growth, with GMV increasing 25 times in Brazil and 20 times in Japan within the first few months of operation [4] Competitive Landscape - Despite its rapid growth, TikTok Shop faces significant competition from established e-commerce giants like Amazon and Shopee, which have strong market positions and substantial investments in logistics [5][6] - Amazon has launched features mimicking TikTok's model, while Shopee is enhancing its live commerce capabilities to compete directly with TikTok Shop [6] - Traditional e-commerce platforms are adapting to the rise of content-driven commerce, indicating a shift in the competitive dynamics of the industry [5][6]