I Called Sea Limited an Attractive Stock Heading Into in 2025 -- Here's Why I Was Right and Why I Think It Will Beat the Market Again in 2026

Core Insights - Sea Limited has shown remarkable stock performance, nearly tripling in 2024 and gaining an additional 20% in 2025, outperforming the S&P 500 by approximately 2.5 percentage points [1][2] - The company is expected to continue its market-beating performance into 2026, driven by strong growth across its business segments [2][6] Financial Performance - In Q3 2025, Sea's revenue grew by 40% year-over-year, with adjusted EBITDA increasing by 68% [4] - E-commerce revenue rose by 35%, while the digital finance segment (Monee) saw outstanding loan balances grow by nearly 70% [4] - The digital entertainment segment experienced a 51% increase in bookings, indicating strong performance in what was previously considered a legacy business [4] Growth Opportunities - The Shopee business's ad revenue grew by over 70%, contributing significantly to high-margin growth [5] - The Monee platform is experiencing strong loan growth outside the Shopee ecosystem, representing less than 10% of total loans, suggesting substantial future growth potential [5] - Sea is still in the early stages of capturing market opportunities in e-commerce and finance, with optimistic projections for 2026 [6]