Sea Limited (SE -0.67%) minted a lot of millionaires in the first four years after its initial public offering (IPO) in October 2017. The Singapore-based e-commerce and gaming company went public at $15, and its shares soared to an all-time high of nearly $367 on Oct. 19, 2021. A $50,000 investment in its IPO would have blossomed into $1.2 million.However, Sea's stock now trades at about $58 -- so that investment would have shriveled to roughly $193,000. That's still a near-four bagger gain in less than sev ...

Key PointsSea Limited is like the Southeast Asian Amazon.com, Activision and Sofi wrapped up in one company.Sea Limited achieved its first full year of profitability since its 2017 IPO.Sea Limited closed 2023 with $8.5 billion in cash and cash equivalents.5 stocks we like better than SEASea Limited NYSE: SEA is a Singapore-based consumer internet technology conglomerate operating in three main digital segments, which include gaming, e-commerce and financial services. The company serves the consumer cyclical ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [3][43]. Core Insights - The company's e-commerce business has shown significant revenue and profit performance due to an improved competitive landscape, with Q4 2023 e-commerce revenue reaching $2.6 billion, a year-on-year increase of 23% [1][7]. - The company achieved a total revenue of $3.6 billion in Q4 2023, reflecting a 5% year-on-year growth, primarily driven by e-commerce and digital financial services, partially offset by a decline in gaming revenue [5][42]. - The adjusted EBITDA for the e-commerce segment was -$230 million, with an EBITDA margin of -9% [1][52]. Summary by Sections E-commerce Business - Q4 2023 e-commerce revenue was $2.6 billion, up 23% year-on-year, with a notable 41% growth in core markets [1][7]. - The management anticipates Shopee to achieve a growth rate of 15%-20% in 2024 and aims for breakeven in the second half of the year [1][9]. Digital Financial Services - The digital financial segment generated $470 million in revenue in Q4 2023, a 24% increase year-on-year, mainly driven by credit services [12][16]. - Adjusted EBITDA for this segment was $150 million, with a profit margin of 31%, up from 20% in the same period last year [12][16]. Gaming Business - The gaming segment reported a GAAP revenue of $510 million in Q4 2023, a 46% decrease year-on-year, with a slight 2% increase in sequential revenue [48][56]. - The number of active users was 530 million, reflecting a 9% year-on-year increase, although the number of paying users decreased by 9% [48][56]. Financial Forecast and Valuation - The company has revised its revenue forecasts for 2024-2025 to $15.5 billion and $17.1 billion, respectively, with an increase of 5% for both years [43][63]. - The target price is set between $59 and $60, indicating an upside potential of 9%-11% [43][63].

Sea Limited (SE -2.73%) has experienced struggles that its counterparts in other parts of the world have avoided. The Singapore-based company has become the Amazon of Southeast Asia even as the e-commerce conglomerate missed the recovery that benefited Amazon and its Latin American peer MercadoLibre.Unlike these competitors, Sea Limited operates a gaming division, which was its original business. The question for its long-term investors is whether any of these struggles will make a difference five years fro ...

Investment Rating - Buy (Maintained) [1] Core Views - The company's e-commerce platform, Shopee, demonstrated strong performance in Q4 2023, with revenue reaching $2.591 billion, a 23.2% YoY increase, surpassing consensus expectations [2] - The digital financial business underperformed in Q4 2023, with revenue of $470 million and adjusted EBITDA of $148 million, both below Bloomberg consensus [3] - The gaming business showed improvement in Q4 2023, with adjusted revenue of $456 million and adjusted EBITDA of $217 million, accounting for 47.6% of adjusted revenue [10] - The company achieved its first full-year profit since going public, with GAAP revenue of $13.06 billion and net income attributable to shareholders of $151 million in 2023 [9] Financial Forecasts and Valuation - Revenue is expected to grow from $13.064 billion in 2023 to $17.817 billion in 2026, with a CAGR of 10.9% [1] - Net income attributable to shareholders is projected to increase from $151 million in 2023 to $1.36 billion in 2026, with a CAGR of 108.5% [1] - Non-GAAP net income is forecasted to rise from $836 million in 2023 to $1.894 billion in 2026, with a CAGR of 31.4% [1] - EPS is expected to grow from $0.27 in 2023 to $2.41 in 2026, with a CAGR of 106.5% [1] E-commerce Business - Shopee's GMV grew 29% YoY in Q4 2023, driven by improved user experience and restrictions on TikTok in the Indonesian market [2] - The commission and advertising monetization rate increased by 0.2 percentage points QoQ to 7%, while the value-added service monetization rate decreased by 0.1 percentage points to 2.9% due to logistics subsidies [2] - Shopee's adjusted EBITDA loss narrowed to $225 million in Q4 2023, better than consensus expectations [2] Digital Financial Business - Revenue grew 24.3% YoY to $470 million in Q4 2023, but fell short of Bloomberg consensus [3] - Adjusted EBITDA increased to $148 million in Q4 2023 from $76 million in Q4 2022, but was below expectations [3] - The business is expected to maintain rapid growth in 2024, but profitability may be negatively impacted by increased marketing expenses [3] Gaming Business - Revenue was $510 million in Q4 2023, below consensus expectations [10] - Adjusted revenue improved QoQ to $456 million, with adjusted EBITDA of $217 million, representing 47.6% of adjusted revenue [10] - Free Fire's daily active users peaked at over 100 million in February 2024, and management expects double-digit YoY growth in user base and revenue in 2024 [10] Financial Ratios - ROE is projected to increase from 2.3% in 2023 to 13.3% in 2026 [15] - Gross margin is expected to rise from 44.7% in 2023 to 50.0% in 2026 [15] - Net profit margin is forecasted to grow from 1.2% in 2023 to 7.6% in 2026 [15] - The debt-to-asset ratio is expected to decline from 64.5% in 2023 to 58.2% in 2026 [15] Valuation Metrics - P/E ratio is projected to decrease from 151.75 in 2023 to 23.98 in 2026 [1] - P/S ratio is expected to decline from 1.75 in 2023 to 1.83 in 2026 [15] - EV/EBITDA is forecasted to drop from 36.73 in 2023 to 16.82 in 2026 [15]

Amazon started out in 1994 selling books online, and today, it dominates the entire e-commerce industry. However, the company has also expanded into other areas like streaming, digital advertising, and cloud computing.The stock has soared over the past decade, and while e-commerce remains the company's largest source of revenue, its other segments are making notable contributions to its profits and success.Sea Limited (SE -2.73%) bears a striking resemblance to Amazon in the latter's earlier days. It draws ...

Sea Limited (SE) reported a loss of 1 cent per share in fourth-quarter 2023, missing the Zacks Consensus Estimate of 2 cents per share. The company posted earnings of $1.25 per share in the year-ago quarter.Revenues of $3.6 billion increased 4.8% on a year-over-year basis. The consensus estimate was pegged at $3.59 billion.The company’s shares have gained 33.1% year to date compared with the Zacks Computer & Technology sector’s rise of 9.8%.Top-Line DetailsDigital entertainment revenues totaled $510.7 milli ...

MariBank, Singapore tech giant Sea Group's digital bank, has launched in Singapore to select members of the public as it rolls out its services progressively.Southeast Asian tech giant Sea Limited on Monday posted its first profitable year amid efforts to defend market share against Alibaba-owned Lazada and TikTok.Net income in 2023 was $162.7 million, as compared to a net loss of $1.7 billion in 2022. There was a net loss of $111.6 million in the fourth quarter of 2023, as compared to net income of $422.8 ...

Key TakeawaysSea Limited reported better-than-expected quarterly results on higher sales at its e-commerce and financial services businesses.The Singapore-based consumer internet provider also posted its first annual profit since it began publicly trading.ADRs of Sea Limited pared early gains and remained in negative territory over the past year. American Depositary Receipts (ADRs) of Sea Limited (SE) pared gained Monday after the Southeast Asian consumer internet company posted better-than-expected results ...

Shares of Sea Limited (SE 4.25%) popped then dropped on Monday after the company reported its results for 2023's fourth quarter before the market opened. It was a great quarter and year for the company, leading to enthusiasm from the market. But uncertainty regarding 2024 threw cold water on investors' initial fiery enthusiasm. Though it had been up by nearly 14% in early trading, it then fell, sinking to as low as down 2.5%. As of 12:40 p.m. ET, Sea stock was up by about 4.5%.A year of progressSea operates ...