5 Best E-Commerce Stocks to Buy in 2021

3. Sea Limited (NYSE: SE)

Number of Hedge Fund Holders: 98

Sea Limited (NYSE: SE) is a company engaging in digital entertainment, e-commerce, and digital financial services in Southeast Asia, Latin America, the rest of Asia, and internationally. The company ranks 3rd on our list of the best e-commerce stocks to buy in 2021.

In light of the company’s growth exceeding expectations in Southeast Asia and Latin America, BofA upgraded Sea Limited (NYSE: SE) to Buy with a hiked price target of $340, this June. 3G Capital Partners fund also boosted its stake in Sea Limited (NYSE: SE) this May. In the first quarter of 2021, Sea Limited (NYSE: SE) had an EPS of -$0.62, missing estimates by -$0.05. Its revenue was $1.76 billion, up 92.98% year over year but missing estimates by $16.69 million. The company has a gross profit margin of 32.95% and has gained 38.89% in the past 6 months and year to date.

By the end of the first quarter of 2021, 98 hedge funds held stakes in Sea Limited (NYSE: SE) worth roughly $10.4 billion. This is compared to 115 hedge fund holders in the previous quarter with a total stake value of approximately $10.8 billion.

ClearBridge Investments, an investment management firm, mentioned Sea Limited (NYSE: SE) in its first-quarter 2021 investor letter. Here’s what they said:

“Singapore-based Sea maintains leading positions in Southeast Asia in video games and e-commerce and operates an emerging digital payments and banking business. While the company is investing heavily into e-commerce and payments, this growth is being funded by its highly profitable gaming segment. We see a long runway for growth across Sea’s businesses with multiple opportunities like e-commerce expansion in Latin America not fully factored into the valuation today. The company also has a well-respected management team that has successfully executed in expanding its total addressable market. Along with existing holding Alibaba, Sea provides exposure to secular growth trends in emerging markets that are harder to replicate through U.S. stocks.”