Group 1 - Sea Limited (NYSE:SE) is considered one of the best rebound stocks to buy currently, with Morgan Stanley reducing its price target to $121 from $173 while maintaining an Overweight rating [1] - Morgan Stanley predicts that Sea's top-line growth will remain solid, but reinvestments in e-commerce and digital financial services will significantly slow down EBITDA growth in 2026 [1] - BofA Securities has also reduced its price target for Sea Limited to $125 from $150 while keeping a Buy rating, and has decreased its earnings per share expectations for fiscal 2026-2028 by 17% to 22% due to lower margins and increased taxes [3] Group 2 - Sea Limited operates in three main business segments: Digital Entertainment, E-commerce, and Digital Financial Services [4] - Despite uncertainties regarding investment scope, Morgan Stanley anticipates that EBITDA will accelerate in 2027 [3] - BofA has lowered its e-commerce EBITDA multiple to 20x from 30x due to slower growth estimates [3]

Core Viewpoint - Sea Limited is expected to report quarterly earnings of $0.90 per share, reflecting a 45.2% increase year-over-year, with revenues projected at $6.78 billion, a 36.3% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 8.9% over the last 30 days, indicating a reevaluation of initial earnings projections by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenue- Other Services' will reach $50.04 million, a 41.3% increase from the prior-year quarter [5]. - 'Revenue- Digital Financial Services' is forecasted to be $1.12 billion, indicating a 53.1% increase year-over-year [5]. - 'Revenue- E-Commerce' is projected at $4.91 billion, reflecting a 34.2% increase from the previous year [5]. User Metrics - 'Digital Entertainment - Quarterly active users' are expected to be 670, up from 618 a year ago [6]. - 'Digital Entertainment - Quarterly paying users' is projected to reach 60, compared to 50 in the previous year [6]. EBITDA Estimates - 'Adjusted EBITDA- Digital Entertainment' is expected to be $371.03 million, an increase from $289.73 million year-over-year [6]. - 'Adjusted EBITDA- E-commerce' is projected at $214.11 million, compared to $152.21 million in the same quarter last year [7]. - 'Adjusted EBITDA- Digital Financial Services' is estimated at $283.96 million, up from $210.98 million in the same quarter of the previous year [7]. Stock Performance - Over the past month, Sea Limited's shares have decreased by 17.5%, while the Zacks S&P 500 composite has increased by 0.6% [7]. - Currently, Sea Limited holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance in the near future [7].

Group 1 - Sea Limited (NYSE:SE) is recognized as one of billionaire Stanley Druckenmiller's top 10 stock picks [1] - Morgan Stanley has reduced Sea Limited's price target from $209 to $173 while maintaining an Overweight rating, citing a focus on operational expenditures to enhance competitive advantage as e-commerce evolves with AI [1] - BofA Securities has also maintained a Buy rating on Sea Limited but lowered its price target from $182 to $150, indicating expectations of pressure on e-commerce margins due to ongoing investments in Southeast Asia, Taiwan, and Brazil [3] Group 2 - Morgan Stanley forecasts that Sea's e-commerce gross merchandise value growth will exceed 20% by 2026, following a strong performance in 2025 [2] - Sea Limited operates in three primary business segments: Digital Entertainment, E-commerce, and Digital Financial Services [4]

Core Insights - Sea Limited is expected to report quarterly earnings of $0.99 per share, reflecting a year-over-year increase of 115.2% and revenues of $5.12 billion, which is a 31.1% increase compared to the previous year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 3%, indicating a collective reassessment by analysts [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Projections - The consensus estimate for 'Revenue- E-Commerce' is projected at $3.62 billion, representing a year-over-year change of +28.4% [4] - 'Revenue- Digital Financial Services' is expected to reach $799.75 million, indicating a year-over-year change of +54% [5] - 'Revenue- Other Services' is projected to be $36.66 million, reflecting a +19.4% change from the prior year [5] User Metrics - Analysts forecast 'Quarterly active users' to be 664, up from 648 in the same quarter last year [6] - The estimate for 'Quarterly paying users' is 60, compared to 53 in the previous year [6] EBITDA Estimates - 'Adjusted EBITDA- Digital Entertainment' is expected to reach $357.85 million, up from $302.80 million year-over-year [6] - 'Adjusted EBITDA- Digital Financial Services' is projected at $249.39 million, compared to $164.68 million in the same quarter last year [7] Stock Performance - Shares of Sea Limited have decreased by 3.4% in the past month, contrasting with a +1.2% move of the Zacks S&P 500 composite [7]

Core Insights - Sea Limited reported a revenue of $5.12 billion for the quarter ended March 2025, marking a 35.2% increase year-over-year and exceeding the Zacks Consensus Estimate by 4.21% [1] - The company's EPS was $0.86, which is an increase from $0.21 in the same quarter last year, although it fell short of the consensus estimate of $0.93 by 7.53% [1] Financial Performance Metrics - Quarterly paying users reached 65 million, surpassing the average estimate of 53 million [4] - Quarterly active users totaled 662 million, slightly above the average estimate of 657 million [4] - E-Commerce revenue was reported at $3.52 billion, which is a 28.3% year-over-year increase but below the average estimate of $3.63 billion [4] - Digital Financial Services revenue was $787.12 million, exceeding the estimate of $733.24 million and reflecting a 57.6% year-over-year growth [4] - Other Services revenue was $34.21 million, slightly below the estimate of $36.04 million, with a year-over-year increase of 17.6% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Digital Entertainment was $458.21 million, significantly higher than the estimate of $322.55 million [4] - Adjusted EBITDA for E-commerce was $264.42 million, exceeding the estimate of $169.07 million [4] - Adjusted EBITDA for Digital Financial Services was $241.44 million, above the estimate of $225.87 million [4] - Unallocated expenses showed an adjusted EBITDA of -$8.44 million, slightly worse than the estimate of -$7.46 million [4] - Other Services had an adjusted EBITDA of -$9.11 million, better than the estimate of -$11.98 million [4] Stock Performance - Sea Limited's shares have returned +20% over the past month, outperforming the Zacks S&P 500 composite's +9.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]