15 High Growth Companies Hedge Funds Are Buying

Page 4 of 14

11. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 86

Average 5-Year Revenue Growth: 68.66%

Sea Limited (NYSE:SE) is a consumer internet company that operates through three segments: e-commerce, digital financial services, and digital entertainment. It runs Shopee, a popular e-commerce platform, Garena, a gaming and eSports platform, and SeaMoney, which offers digital financial services. Sea Limited (NYSE:SE) is one of the best high growth stocks to monitor, with an average 5-year revenue growth of nearly 69%.

On April 17, JPMorgan analysts downgraded Sea Limited (NYSE:SE) from Overweight to Neutral and trimmed the price target from $160 to $135. JPMorgan has revised its outlook on Sea, cutting its 2025/26 EBITDA forecasts by 5%. The downgrade stems from softer growth expectations in the e-commerce segment, prompting a reduction in adjusted EBITDA by 18% for 2025 and 11% for 2026. Fintech estimates were also trimmed slightly, while the gaming segment saw a modest bump in projections.

In 2024, Sea Limited (NYSE:SE) experienced double digit growth and positive adjusted EBITDA across all three business segments: e-commerce, fintech, and gaming. Shopee, its e-commerce platform, topped $100 billion in GMV and was profitable in both Asia and Brazil. Sea expects Shopee to grow another 20% in 2025 while continuing to improve profitability. In fintech, Sea’s loan book grew over 60% year-over-year to surpass $5 billion, making it one of Southeast Asia’s biggest consumer lenders. Garena, Sea’s gaming unit, saw a huge comeback with Free Fire, with 34% growth in annual bookings. The company now expects both its user base and bookings to continue growing by double digits in 2025.

According to Insider Monkey’s fourth quarter database, 86 hedge funds were long Sea Limited (NYSE:SE), up from 58 funds in the prior quarter. Tiger Global Management was the top stakeholder of the company, with 16 million shares valued at $1.70 billion.

Page 4 of 14