From Nasdaq:

Sea Limited, a company often overshadowed by giants like Amazon and Alibaba, actually holds a market lead in Southeast Asia with its Shopee e-commerce arm. It also operates a fintech business, making it a strong contender in the e-commerce market. While Sea’s gaming business has struggled, it shouldn’t overlook the potential of Sea Limited stock.

Sea Limited’s Shopee continues to lead in the Southeast Asia market, offering untapped growth potential with a market cap of $20 billion. Its core market, the seven Southeast Asian countries, boasts a combined population of more than 600 million, providing significant growth opportunities.

Garena, the gaming segment of Sea Limited, has experienced struggles, seeing a 43% revenue drop in the first nine months of 2023. However, the impact of gaming on the company’s overall revenue has been relatively limited, with most of the revenue coming from e-commerce and fintech. Despite these challenges, the stock shows potential with its low P/E ratio and increased free cash flow.

Investors may overlook some key positives for Sea Limited due to Garena’s performance. However, its low P/E ratio and strong focus on e-commerce and fintech should bode well for the stock. As investors pay more attention to Asia outside of China, Sea Limited stock has the potential to attract more investors.

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