With Wall Street analysts rating Sea Limited (SE) as a “Strong Buy” and projecting nearly 80% upside, investors are starting to take a fresh look at this fast-growing digital powerhouse. Sea blends what many different companies do (gaming, online commerce, digital payments) into a unified internet and technology platform. This diversified business has its financials soaring, capturing Wall Street’s attention.
Let’s find out if it is the right time to pounce on this growth stock.
Sea Powers Ahead with Profit and Scale
Singapore-based Sea Limited, a global consumer-tech company, is structured around three core segments: digital entertainment (Garena), e-commerce (Shopee), and digital financial services (SeaMoney or Monee). The company has seen its revenue skyrocket from $4.3 billion to $16.8 billion in 2024. Analysts predict that Sea will touch $22.3 billion in revenue for 2025, a 32% year-over-year increase with a projected 24% increase to $27 billion in 2026.
Sea recently delivered one of its strongest quarters in years powered by surging e-commerce volumes, a rapidly scaling fintech arm, and a gaming division back in hypergrowth. In the third quarter, total revenue reached $6 billion, up 38.3% year-over-year. All three business pillars generated high profitability and rapid growth.
Sea continues to balance aggressive growth with expanding profitability, even as it invests in logistics, fulfilment, financial inclusion, and immersive gaming experiences. Adjusted EBITDA climbed to $874 million, a striking 68% increase. Net income rose to $375 million compared to $153.3 million in the year-ago quarter.
Shopee: E-Commerce Platform
Shopee is the company’s e-commerce platform, a mobile-centric, social-focused online marketplace that connects buyers and sellers, with integrated payments, logistics, and seller services. The platform saw a 15% increase in average monthly active buyers and a 12% rise in purchase frequency. Gross merchandise value (GMV) increased by 28% year-over-year in Q3 to $32.2 billion, marking five consecutive quarters of sequential growth. Marketplace revenues climbed 37% year-on-year, while advertising revenue alone surged more than 70%. Importantly, the Shopee VIP program exploded to 3.5 million members, with VIP users exhibiting far higher spending and engagement.
Sea continues to spend extensively in logistics as a key competitive advantage. SPX Express (established in 2018) has evolved into a region-leading network capable of delivery across congested cities, rural islands, rice fields, and places with no formal addresses.
Monee: Digital Financial Services
Sea Money, also known as Monee, provides fintech services such as mobile wallets, payment processing, credit/loans, banking, and insurance products to consumers and small and medium businesses. Monee had a strong quarter, with revenue up 61% and adjusted EBITDA up 37% year on year. During the quarter, its loan book grew by $1 billion to $7.9 billion, a 70% year-on-year increase.
Garena: Gaming Platform
Garena creates and publishes online games (for mobile and PC) and is involved in eSports and gaming content. Garena delivered a spectacular rebound, with bookings up 51% and adjusted EBITDA up 48%, its best performance since 2021. Garena is still on track for over 30% booking growth in 2025, strengthening its position as a critical component of Sea's ecosystem.
Sea is delivering rapid growth, operational strength, and increased profitability in e-commerce, fintech, and digital entertainment. Management stressed that Sea's long-term objective of achieving strong, profitable growth by capitalizing on expanding e-commerce and digital finance penetration remains intact.
Analysts project Sea Limited’s earnings will increase by 144% for the full year to $3.50 per share and climb another 47% to $5.14 per share in 2026. Valued at 26 times projected 2026 earnings, Sea appears to be a reasonable tech stock to buy now.
What Does Wall Street Say About SE Stock?
Following a strong quarter, analysts at DBS, Bank of America Securities, Phillip Securities, Deutsche Bank and many others held on to their “Buy” ratings for the stock. Overall, Wall Street considers Sea Limited a “Strong Buy.” Among the 22 analysts covering SE, 16 rate it a “Strong Buy,” two as a “Moderate Buy,” and four rate it a “Hold.” The stock’s average price target of $197.53 suggests it can climb as much as 47% from its current levels. Its high-end estimate of $241 implies SE still has 80% potential upside over the next 12 months.
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
