Sea Limited (NYSE:SE) is one of the stocks Jim Cramer put under the spotlight. During the lightning round, a caller inquired about Cramer’s thoughts on the stock, and he replied:
“You know, look, it’s information technology of an uncertain way with a… 40 PE. I’m sorry, I do not share your enthusiasm for that stock.”
Photo by Adam Nowakowski on Unsplash
Sea Limited (NYSE:SE) provides digital platforms for e-commerce, online gaming, and financial services, including mobile wallets, credit, insurance, and payment solutions. Lakehouse Capital stated the following regarding Sea Limited (NYSE:SE) in its second quarter 2025 investor letter:
“Southeast Asia’s leading e-commerce platform, Sea Limited (NYSE:SE), was our largest contributor for the year as the company delivered an impressive combination of accelerating growth and improving profitability. At a group level, revenue rose 30% year-on-year to US$17.9 billion and operating income saw a material turnaround from a US$38.8 million loss to a US$875.2 million profit. Its core e-commerce platform, Shopee, emerged stronger following a period of elevated marketing investment, which drove higher order volumes, improved take rates, and an acceleration in top line growth. Notably, regulatory pressures in Indonesia have abated, and competition across the region has moderated, with peers now taking a more rational approach to take rates, paving the way for a more favourable industry structure going forward.
Beyond e-commerce, Sea’s digital financial services business (Monee) and digital gaming platform (Garena) also performed well. Monee saw its loan book grow 77% year-on-year while simultaneously improving the proportion of non-performing loans, which contributed to revenue growth of 44% to US$2.7 billion. For Garena, although reported revenue declined slightly, it was encouraging to see bookings increase 51% year-on-year, supported by stabilising engagement and improved monetisation. Overall, it was a very positive year, and we remain patient holders. Whilst not as well-known as some global peers, Sea continues to benefit from the steady shift toward online retail and digital services across a region where e-commerce penetration remains in its early stages and below global averages.”
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.
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Disclosure: None. This article is originally published at Insider Monkey.
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