From MarketWatch: 2024-05-19 06:07:00

Sea Limited (NYSE: SE) is a leading e-commerce conglomerate in Southeast Asia, similar to Amazon and MercadoLibre in their respective regions. Despite recent setbacks, Sea Limited’s latest results show potential growth, with $3.7 billion in revenue, a 23% year-over-year increase, and signs of improvement in its gaming segment, Garena.

Chairman and CEO Forrest Li mentioned on the Q1 2024 earnings call that Free Fire is the world’s most-downloaded mobile game again, hinting at further growth potential if relaunched in India. However, a $23 million net loss in Q1 remains a concern, alongside increased sales and marketing spending.

Investors are optimistic about Sea Limited’s future, given the positive signs from its segments and an attractive valuation with a P/S ratio of 3.1. While challenges persist, like uncertainty around spending and profitability, the potential return to growth for Sea Limited could lead to a robust recovery in its stock value.

The Motley Fool’s analysts did not select Sea Limited as one of their top 10 stock picks, but the company shows promise. Considering the potential growth from Garena and a potential return to profitability, Sea Limited could be an interesting investment opportunity for those willing to navigate through the current challenges and uncertainties.



Read more at MarketWatch: Has Sea Limited Stock Finally Escaped Choppy Waters?