Core Insights - Amazon.com (AMZN) has faced significant stock declines exceeding 30% on three occasions in recent years, resulting in substantial market capitalization losses [2] - The company is currently under pressure from various risks, including cash flow issues, increasing competition, and legal challenges [3][4][5][6] Financial Performance - Amazon's free cash flow for the last twelve months has decreased to $14.8 billion, influenced by a $50.9 billion year-over-year increase in property and equipment acquisitions [9] - The company has raised its capital expenditure forecast for 2025 to $125 billion from $118 billion, with expectations for further increases in 2026 [9] - Revenue growth stands at 10.9% for the last twelve months and an average of 11.3% over the past three years, with a free cash flow margin of approximately 2.0% and an operating margin of 11.4% [10] Competitive Landscape - The North America segment is experiencing slowing revenue growth and margin compression due to rising logistics and marketing expenses [9] - Walmart's e-commerce sales have increased by 27% year-over-year, with marketplace revenue rising by 37%, indicating intensifying competition [9] Legal and Regulatory Environment - Amazon is facing ongoing legal costs and potential penalties, with a proposed class-action lawsuit regarding disability accommodations and an FTC lawsuit alleging anticompetitive practices [9] - The court has allowed the FTC case to proceed to trial, which is set for 2026 [9]

Core Viewpoint - Sea Limited has made a significant recovery after a challenging 2022, returning to profitability and showing renewed momentum across its e-commerce, gaming, and fintech segments, although competition is intensifying in the Southeast Asian market [1][2]. Group 1: Business Performance - Sea Limited has regained profitability and improved cost discipline, leading to a more than 100% increase in stock price from its lows [2]. - The fintech segment, rebranded as Monee, has become a strong profit contributor with over 28 million active borrowers and a loan book of $5.8 billion, reflecting a growing demand for credit products [10]. - Monee generated $787 million in revenue in the first quarter, a 58% year-over-year increase, with adjusted EBITDA reaching $241 million, up 62% year-over-year [11]. Group 2: Competitive Landscape - Shopee, Sea's e-commerce platform, holds over 50% market share in several Southeast Asian countries but faces increasing competition from TikTok Shop, Lazada, and other regional players [4][5][6]. - TikTok Shop is rapidly gaining traction, particularly among Gen Z users, creating new shopping behaviors that Shopee does not fully replicate [5]. - Lazada, backed by Alibaba, is leveraging its resources in logistics and technology to regain market share, posing a serious threat to Shopee [6]. Group 3: Risks and Challenges - The competitive landscape is becoming more challenging, with Shopee needing to reinvest in logistics and promotions, which could pressure short-term margins [9]. - Monee's rapid growth in lending exposes it to potential risks, particularly as it serves first-time borrowers who may lack formal credit histories [12]. - Regulatory changes in digital lending across Southeast Asia could slow growth or increase compliance costs, similar to past events in China [13]. Group 4: Valuation and Market Sentiment - Sea Limited's stock has rebounded to nearly $150, moving away from its "deep value" phase, with current price-to-sales and price-to-earnings ratios at 5.3 and 106, respectively [14]. - The market is no longer pricing Sea as a broken growth story, indicating that any negative developments could lead to a significant stock price correction [15]. - Investors need to be cautious as the company faces competitive threats, credit exposure, and potential volatility in stock prices [16].