5 Best Gaming Stocks To Buy Now

4. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 65

Sea Limited (NYSE:SE) is a Singapore-based company engaged in the digital entertainment, e-commerce, and digital financial service businesses in Asia, Latin America, and internationally. Sea Limited (NYSE:SE)’s Garena digital entertainment platform offers users access to mobile and PC online games, entertainment content, live streaming of gameplay, and online forums for user communication. Sea Limited (NYSE:SE) features as one of the best gaming stocks to buy now. 

On August 17, Stifel analyst Scott Devitt assigned a Buy rating to Sea Limited (NYSE:SE) but slashed the price target on the shares to $95 from $105 after the company reported mixed Q2 results and retracted e-commerce guidance for the full year, citing heightened macro uncertainty. While he lowered his growth estimates for the second half to factor in the unpredictable macro backdrop, the analyst remains positive on the long-term trajectory of Sea Limited (NYSE:SE)’s margin improvements as management prioritizes profitability.

According to Insider Monkey’s data, 65 hedge funds were bullish on Sea Limited (NYSE:SE) at the end of June 2022, compared to 77 funds in the prior quarter. Chase Coleman’s Tiger Global Management is the biggest stakeholder of the company, with 8.2 million shares worth $548 million. 

In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Sea Limited (NYSE:SE) was one of them. Here is what the fund said:

“Sea Limited (NYSE:SE), a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea faced significant multiple compression in the quarter, exacerbated by a slowdown in user growth at its key Free Fire digital game and mounting investments in its e-commerce operation, particularly in new markets like Brazil. We exited our position as we lost confidence in the long- term unit economics in some of Sea’s new markets and were concerned by the simultaneous slowdown in revenue growth and increase in underlying cash burn.”