Global X Millennial Consumer ETF TodayMILNGlobal X Millennial Consumer ETF$49.85 +0.17 (+0.34%) 52-Week Range$36.87▼$50.86Dividend Yield0.20%Assets Under Management$128.67 millionAdd to WatchlistMillennials have been assigned a lot of blame, from spurring the downfall of paper napkins and bars of soap to turning their backs on mothballs and canned tuna fish. As a millennial myself, I shoulder some of that blame. While I still use napkins and bars of Dial soap, I haven’t opened a can of tuna fish since I le ...

Core Insights - Sea Limited (NYSE: SE) is a Singaporean tech conglomerate primarily engaged in digital entertainment (Garena), e-commerce (Shopee), and digital financial services (Monee) in Southeast Asia [1] Group 1 - The company has been part of a personal investment portfolio since mid-2020, during the pandemic [1] - The author has a background in engineering and a strong interest in tech stocks, which influences investment choices [1] - The company is recognized for its significant operations in Southeast Asia, indicating a strategic focus on this growing market [1]

Core Thesis - Sea Limited is positioned as a compelling investment in Southeast Asia's digitizing economy, transitioning from a gaming company to a diversified digital ecosystem encompassing e-commerce, gaming, and financial services [2][5] Financial Performance - In 2024, Sea Limited reported diluted earnings per share of US$0.74, a significant recovery from a loss of US$0.25 in 2023, indicating a shift towards sustainable profitability [2] - The company closed 2024 with $10.4 billion in cash and short-term investments, demonstrating operational efficiency and strong cash generation [4] Market Position and Growth - Shopee, Sea Limited's e-commerce arm, holds a 46.9% market share in Southeast Asia, supported by an integrated logistics network and a strong seller ecosystem [3] - Garena, the gaming segment, maintains high engagement with nearly 595 million quarterly active users [3] - SeaMoney is the fastest-growing segment, expanding its services in payments, credit, and banking through ecosystem integration and regulatory approvals [3] Competitive Advantages - Sea Limited's market leadership, ecosystem integration, and data-driven personalization create strong competitive moats against rivals like Lazada, GoTo, and TikTok Shop [4] - Financial projections indicate revenue growth from $19.4 billion in 2024 to $36–50 billion by 2027, with operating margins expected to expand to 12–15% and EPS reaching $3.50–5.00 under various scenarios [4] Strategic Opportunities and Risks - Strategic opportunities include e-commerce market expansion, scaling of SeaMoney, and international growth in Latin America [5] - Risks involve competition, regulatory uncertainty, and macroeconomic exposure [5] Investment Outlook - Sea Limited's strong balance sheet and diversified revenue streams present a high-conviction investment case, with a 12–18 month price target of $85–95 and a potential annualized return of 25–35% over three years [5]

Core Viewpoint - Sea Limited, the parent company of Shopee, reported significant growth in revenue and profit for Q2 2025, shifting its strategic focus from "profit-first" to "growth-first," leading to a rise in stock price [3][5]. Financial Performance - In Q2 2025, Sea Limited achieved total revenue of $5.3 billion, a year-on-year increase of 38.2%, exceeding market expectations of $4.55 billion [3]. - The company reported a net profit of $414.2 million, marking a substantial year-on-year growth of 418% [3]. - Shopee contributed $3.8 billion in revenue, representing a 33.7% year-on-year increase and accounting for 71.7% of total revenue [4]. Business Segments - SeaMoney, the digital financial service, generated $882.8 million, a remarkable year-on-year increase of 70% [4]. - The core market revenue for Shopee, primarily from transaction commissions and advertising, increased by 46.2%, with the number of sellers using advertising rising by approximately 20% and average seller ad spending growing by over 40% [4]. Strategic Shift - The CEO announced a strategic shift towards prioritizing growth, aiming to capitalize on significant growth opportunities in Southeast Asia and Brazil while expanding market share [5]. - This new strategy differs from the previous "growth at all costs" approach, focusing on sustainable reinvestment while maintaining profitability [5]. Company Background - Sea Limited, originally founded as Garena in 2009, has evolved through three key phases: starting with gaming, diversifying into e-commerce with Shopee, and now transitioning into a comprehensive internet platform [6]. - The company plans to increase investments in key markets, particularly in AI technology, logistics infrastructure, and user growth, to enhance operational efficiency and market share [6]. Challenges - Despite the positive financial results, the company's earnings per share of $0.65 fell short of market expectations of $0.77, indicating the need for careful balance between growth and profitability [7]. - The global macroeconomic uncertainty and intense competition in various regional markets will test the company's strategic execution capabilities [7].

Core Viewpoint - Sea, the Southeast Asian e-commerce giant, reported a record high revenue of $5.3 billion for Q2 2025, marking a significant year-on-year growth of 38.2%, surpassing market expectations of $5.12 billion. This is the strongest revenue growth for Sea in the past 12 quarters, driven by the synergy of its three main business segments: e-commerce, digital finance, and digital entertainment [1][3]. Financial Performance - Gross profit increased by 52.1% to $2.4 billion, with a gross margin improvement to 45.3% from 39.8% in the same period last year [3]. - Net profit soared to $414 million, a 418% increase from $79.9 million year-on-year, achieving the best quarterly profit in history. Diluted earnings per share rose to $0.65, a 364% increase, but fell short of analyst expectations of $0.99 [3]. - Adjusted EBITDA reached $760 million, up 71% year-on-year, with an adjusted EBITDA margin of 15.3%, a historical high [3]. Main Business Segments - E-commerce segment Shopee generated $3.8 billion in revenue, a 33.7% year-on-year increase, with adjusted EBITDA of $227.7 million, marking a historic turnaround from a loss of $9.2 million in the same period last year [4]. - Digital finance service Monee became the fastest-growing segment, with total revenue of $882.8 million, a 70% increase year-on-year. Adjusted EBITDA reached $255.3 million, up 55% [7]. - Digital entertainment segment Garena reported revenue of $559.1 million, a 28.4% increase year-on-year, with adjusted EBITDA of $368.2 million, up 21.6% [9]. Strategic Direction - Sea's management announced a strategic shift to prioritize growth while maintaining profitability, indicating the company has successfully transitioned from a restructuring phase to a new stage of growth and profitability [10]. - The company plans to establish 10 automated sorting centers in Southeast Asia by the end of 2025, aiming to increase the proportion of two-day delivery orders from 45% to 60% and reduce logistics costs by 10% [11]. Market Outlook - Following the earnings report, several analysts raised their target prices for Sea, with Macquarie initiating coverage with a "Buy" rating and a target price of $219.9, while Citigroup raised its target price to $206 [12]. - Despite short-term challenges such as competition from TikTok Shop and currency fluctuations, the long-term growth potential remains strong, with e-commerce penetration in Southeast Asia at only 6.5% compared to 27% in China [13].

Core Viewpoint - Sea Limited has successfully turned around its business, showing significant growth and profitability across all segments, leading to a substantial increase in stock value. Group 1: Company Performance - At the end of 2022, Sea Limited faced challenges with only 7% revenue growth and a net loss of $1.7 billion, primarily due to struggles in its digital entertainment segment [2] - In 2024, Sea reported a 28% increase in overall revenue and a profit of $448 million, indicating a strong recovery [3] - The second quarter of 2025 showed even better results, with gross profit up 50% year over year and net income rising from $79.9 million to $414.2 million [5] Group 2: Business Segments - Sea's e-commerce platform, Shopee, achieved 34% year-over-year revenue growth, while the Monee financial service business saw loan principal balances increase by 94% [6] - The Garena digital entertainment platform experienced a 23% growth in bookings, with management forecasting a 30% growth for the full year [6] Group 3: Financial Health - Sea's adjusted EBITDA grew by 85%, and the company now holds $10.6 billion in cash on its balance sheet, reflecting improved financial health [5] - The non-performing loan ratio for the Monee platform is at a low 1%, indicating effective risk management [6] Group 4: Market Position and Valuation - Sea Limited's stock trades at about 45 times forward earnings expectations, which may be justified given the nearly 40% revenue growth and expanding margins [7] - As the leading e-commerce platform in Southeast Asia, Shopee has significant potential for customer relationship development, similar to Amazon's evolution [8] - The company has become more efficient, growing rapidly without excessive capital burn, suggesting continued upside potential [9]

Core Insights - Sea Limited (SE) reported adjusted earnings of 85 cents per share in Q2 2025, missing the Zacks Consensus Estimate by 14.14% and showing an increase from 46 cents per share in the same quarter last year [1] - Revenues reached $5.3 billion, a 38.2% year-over-year increase, driven by growth in e-commerce and digital financial services, surpassing the Zacks Consensus Estimate by 4.67% [1] Revenue Breakdown - Digital Entertainment (Garena) revenues were $559.1 million, up 28.4% year-over-year, supported by an increase in active users and paying user penetration [2] - Quarterly active users reached 664.8 million, a 2.6% increase year-over-year, while paying users increased by 17.8% to 61.8 million, raising the paying user ratio to 9.3% from 8.1% [2] - E-commerce (Shopee) service revenues totaled $3.8 billion, a 33.7% year-over-year increase, including GAAP marketplace revenues of $3.3 billion and GAAP product revenues of $0.5 billion [3] - Gross Merchandise Value (GMV) increased by 28.2% year-over-year to $29.8 billion, with gross orders reaching 3.3 billion, a 28.6% increase [4] - Digital Financial Services revenues surged 70% year-over-year to $882.8 million, driven by a loan book growth of 94% to $6.9 billion [5] Profitability Metrics - Gross profit increased by 52.1% year-over-year to $2.41 billion, with gross margin expanding by 420 basis points to 45.8% [7] - Adjusted EBITDA rose 84.9% year-over-year to $829.2 million, with an adjusted EBITDA margin of 15.8%, expanding by 400 basis points [9] - Digital Entertainment's adjusted EBITDA increased by 21.6% to $368.2 million, while E-commerce adjusted EBITDA reached $227.7 million, a significant turnaround from a loss of $9.2 million in the prior year [9] Cash Flow and Balance Sheet - As of June 30, 2025, Sea Limited had cash and cash equivalents of $2.17 billion, slightly down from $2.18 billion as of March 31, 2025 [11] - The company generated $1.62 billion in cash from operating activities in the reported quarter, compared to $756.9 million in the previous quarter [11]

Investment Rating - The report maintains a "Strong Buy" rating for Sea (SE.N) [1][4] Core Insights - Sea's Q2 2025 performance exceeded expectations with revenue of $5.3 billion, a 38% increase year-over-year, and e-commerce revenue of $3.8 billion, up 33.7% [1] - The company has raised its growth guidance for the year, expecting a 25% year-over-year increase in Shopee's GMV for the first half of 2025 and over 30% growth in Garena's bookings for the year [1][4] - The financial services segment is experiencing rapid growth, with Sea Money's revenue reaching $883 million, a 70% increase year-over-year, and a loan portfolio growth of over 90% [4] Financial Performance - For 2025, the company forecasts total revenue of $21.7 billion, with a year-over-year growth rate of 29% [2] - Adjusted EBITDA is projected to be $3.55 billion in 2025, reflecting an 81% increase from the previous year [2] - Earnings per share (EPS) is expected to rise significantly to $4.46 in 2025, compared to $0.27 in 2023 [2][8] Business Segments - E-commerce: Shopee's GMV for Q2 was $29.8 billion, a 28.2% increase, with strong growth in advertising revenue and user engagement [4] - Digital Entertainment: Revenue for Q2 reached $560 million, a 28.4% increase, with a significant rise in active users and bookings [4] - Digital Financial Services: Sea Money's loan book reached $6.9 billion, with a healthy delinquency rate of only 1.2% [4] Market Position - Sea has established itself as a market leader in Brazil, with 25% of packages delivered the next day and 40% within two days, while also reducing logistics costs by 16% year-over-year [4] - The company is enhancing user loyalty through initiatives like the VIP membership program, which has shown promising results in Indonesia [4] Stock Performance - The stock has shown strong performance with a 160.2% increase over the past 12 months [3]

Core Viewpoint - Sea Limited, the parent company of Shopee, has shifted its strategy from "profit-first" to "growth-first," resulting in significant revenue and profit increases in Q2 2025, with GAAP revenue reaching $5.3 billion, a 38.2% year-over-year growth, and net profit soaring to $410 million, a 418% increase from the previous year [1][5][8]. Revenue Performance - Sea's overall GAAP revenue for Q2 2025 was $5.3 billion, marking the fastest growth in nearly 12 quarters and surpassing market expectations of $5.12 billion [1]. - The e-commerce platform Shopee remains the largest revenue source, contributing $3.8 billion, a 33.7% year-over-year increase, accounting for 71.7% of total revenue [2][5]. - The gross merchandise volume (GMV) for Shopee grew by 25% year-over-year, with core market revenue (including transaction commissions and advertising) increasing by 46.2% to $2.6 billion [2]. Strategic Shift - CEO Forrest Li emphasized a renewed focus on growth, indicating a strategic pivot towards market share expansion and business development, moving away from the previous emphasis on cost control and profitability [1][5][6]. - The company plans to invest more resources in areas with long-term strategic value, such as market acquisition, technology development, and logistics infrastructure [8]. Business Segments Growth - Digital financial services (Monee) revenue surged by 70% year-over-year to $883 million, indicating strong growth potential in the digital payment sector [3]. - Digital entertainment (Garena) revenue reached $559 million, a 28.4% increase, with management raising the annual performance guidance, expecting over 30% growth in bookings [4]. Market Position and Competition - Shopee has become the leading e-commerce platform in Brazil, competing against local players like Mercado Livre and international platforms like Amazon [3]. - Despite competitive pressures, Shopee's growth in Brazil has remained robust, with no significant impact from competitors lowering shipping thresholds [3][8]. Future Outlook - Analysts believe that Shopee's penetration in emerging markets still has room for growth, and the digital financial services sector is in its early development stages, suggesting long-term growth potential despite short-term profit pressures [9].

Core Viewpoint - Sea Limited has shifted its strategy from "profit-first" to "growth-first," focusing on market share expansion and business development, as evidenced by its strong financial performance in Q2 2025 [1][5]. Group 1: Financial Performance - Sea Limited reported a GAAP revenue of $5.3 billion in Q2 2025, marking a 38.2% year-over-year increase, the fastest growth in nearly 12 quarters, surpassing market expectations of $5.12 billion [1]. - The net profit surged from $79.9 million in the same quarter last year to $410 million, reflecting a 418% year-over-year growth [1]. - The e-commerce platform Shopee remains the largest revenue source, contributing $3.8 billion, a 33.7% increase year-over-year, accounting for 71.7% of total revenue [2]. Group 2: Business Segments Growth - All three major business segments of Sea achieved double-digit growth in Q2 2025 [2]. - The core market revenue, including transaction commissions and advertising, grew by 46.2% to $2.6 billion, significantly outpacing GMV growth, indicating improved monetization efficiency [2]. - Digital financial services (Monee) revenue reached $883 million, a 70% year-over-year increase, marking it as the fastest-growing segment [3]. Group 3: Strategic Shift - The company has communicated a clear shift in strategy, prioritizing growth over profitability, with CEO Forrest Li emphasizing the potential of the market and the current stage of the business [5]. - Sea has established a more efficient operational system and a sustainable business model after two years of adjustments, allowing for a balance between growth and profitability [7]. - Future investments are expected to focus on market acquisition, technology development, and infrastructure, including logistics and AI technology [7]. Group 4: Market Position and Competition - Shopee has become the leading e-commerce platform in Brazil, competing effectively against local and international players like Mercado Livre and Amazon [3]. - Despite competitive pressures, Shopee's growth in Brazil has remained strong, with no significant impact from competitors lowering shipping thresholds [3]. - Analysts believe that Shopee's penetration in emerging markets still has room for improvement, and the digital financial services segment is in its early development stage [8].