Is SE a good stock to buy? We came across a bullish thesis on Sea Limited on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on SE. Sea Limited’s share was trading at $82.44 as of June 10th. SE’s trailing and forward P/E were 32.46 and 28.33 respectively according to Yahoo Finance.
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Sea Limited, through its subsidiaries, operates as a technology company in Southeast Asia, Latin America, the rest of Asia, and internationally. SE reported another strong quarter, with fourth-quarter 2025 revenue rising 38% year-over-year to $6.85 billion, yet the most important takeaway was not the company’s growth but its continued decision to prioritize ecosystem expansion over near-term profitability. While investors expected Shopee’s margins to inflect upward, management instead chose to reinvest improving unit economics into fulfillment networks, instant delivery capabilities, VIP membership programs, and content partnerships.
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The underlying economics remain encouraging, as marketplace revenue is growing nearly twice as fast as GMV, take rates continue to rise, and merchant advertising spend is increasing, demonstrating that Shopee possesses pricing power it has deliberately chosen not to harvest. The investment case increasingly centers on Sea’s ability to build what management’s results suggest is a powerful ecosystem advantage through the integration of commerce, payments, credit, and subscriptions.
This was evident in the VIP program, where routing renewals through SPayLater increased renewal rates in Indonesia from 40% to 70%, highlighting tangible benefits that competitors operating only an e-commerce or fintech platform would struggle to replicate. The strength of this ecosystem is also visible in Monee, whose loan book expanded 80% to $9.2 billion while maintaining a low 1.1% non-performing loan ratio.
Off-platform SPayLater loans are growing rapidly, indicating that Sea’s financial services business is evolving into a standalone growth engine built on proprietary transaction data from hundreds of millions of users. With Brazil becoming profitable, Garena continuing to generate substantial cash flow, and management maintaining confidence that Shopee can ultimately achieve 2-3% margins, the market appears to be valuing Sea as though current margin levels are permanent.
If ecosystem advantages continue to strengthen and investment cycles eventually moderate, management’s framework points to potential EBITDA of $7-8 billion by 2028, implying roughly double the current share price, with additional upside if Brazil and Monee exceed expectations.
Previously, we covered a bullish thesis on Sea Limited (SE) by Wolf of Harcourt Street in May 2025, which highlighted Shopee’s accelerating growth, Garena’s user resurgence, and Sea Money’s disciplined lending expansion. SE’s stock price has depreciated by approximately 49.75% since our coverage. Nikhs shares a similar view but emphasizes on ecosystem integration, reinvestment-driven growth, and future margin expansion across Sea’s commerce, fintech, and subscription businesses.
Sea Limited is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held SE at the end of the first quarter which was 113 in the previous quarter. While we acknowledge the risk and potential of SE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
