13 Best Stocks to Buy According to Citadel LLC

5. Sea Ltd. (NYSE:SE)

Value of Citadel’s Long Position: $727 Million

Number of Hedge Fund Holders: 102

Potential Upside: 29%

Returns between June 30 and October 24: -3%

Sea Ltd. (NYSE:SE) is one of the best stocks to buy according to Citadel LLC. On October 20, Venugopal Garre, an analyst from Bernstein, lowered his price target on the stock to $185 from $210. However, he maintained his Outperform rating as his long-term outlook remains positive.

This update from Garre came shortly after the company’s founder, Forrest Li, sent a memo to all employees on Monday outlining his view of Sea’s potential to become a trillion-dollar company by capitalizing on AI. While the analyst called the memo a “compelling long-term vision anchored by a strong dose of AI optimism”, he, however, raised concerns over near-term pressure on growth and profitability while the company pursues such goals.

Garre noted that consensus forecasts for Sea Ltd. (NYSE:SE) have risen amid robust execution of its strategy in the first half of the year. However, as the company is investing heavily in expanding capabilities in its e-commerce and fintech businesses, the analyst is sceptical whether “flawless first half will be repeated”.

That said, Garre appeared to take a cue from past cycles, arguing that strategic investments to gain market share and maintain a competitive edge are critical for long-term business sustainability and should be prioritized over tackling near-term headwinds. He therefore maintained his bullish stance.

Sea Limited (NYSE:SE) is a Singapore-based global consumer internet company that operates businesses across digital entertainment, e-commerce, as well as digital financial services. It primarily operates in Southeast Asia, Taiwan, Latin America, and other global markets.