Sea Limited (SE): A Bull Case Theory

We came across a bullish thesis on Sea Limited on GabGrowth’s Substack. As of 3ʳᵈ July, Sea Limited’s share was trading at $149.47. SE’s trailing and forward P/E were 104.52 and 70.84 respectively according to Yahoo Finance.

Sea Limited is a Southeast Asian internet powerhouse with a diversified business model spanning e-commerce (Shopee), digital entertainment (Garena), and digital financial services (Monee). The company’s history dates back to 2009 when Forrest Li founded Garena, which later evolved into Sea Limited. Today, Sea is the largest e-commerce platform in Southeast Asia, a leading gaming company with the popular game Free Fire, and a growing digital financial services provider. The company has demonstrated significant growth, with revenue reaching $16.8 billion in 2024 and a net income of $447 million.

Sea’s business segments have shown remarkable performance. Shopee, the e-commerce arm, has achieved profitability across Asia and Brazil, with an adjusted EBITDA of $34.4 million in Q3 2024. Garena, the gaming segment, has seen a resurgence in growth, with bookings growing 51% YoY and adjusted EBITDA growing 57% YoY in Q1 2025. Monee, the digital financial services arm, has also shown impressive growth, with revenue rising 57% YoY and EBITDA margin reaching 30%. The company’s financial performance has improved significantly, with operating leverage beginning to materialize.

The bullish investment thesis for Sea Limited centers on its dominant market positions, multiple growth drivers, improving profitability, and visionary leadership. The company has a significant runway for growth, with a large and young population in Southeast Asia and Brazil driving e-commerce, gaming, and digital financial services adoption. Sea’s integrated flywheel effect, where data from commerce, payments, and gaming flows into a unified targeting engine, creates a competitive moat. The company’s valuation, using a sum-of-the-parts model, implies an enterprise value of $115.4 billion, suggesting an upside of around 27% from the current price.

Previously, we covered a bullish thesis on Sea Limited by Global Equity Briefing in May 2025, but the stock has depreciated by 9.37% since then, as the thesis emphasized the company’s potential in AI and energy, citing its nuclear energy infrastructure assets and role in U.S. LNG exportation the thesis has not played out yet. The current thesis by GabGrowth shares a similar view, highlighting Sea Limited’s dominant market positions, multiple growth drivers, and improving profitability across its e-commerce, gaming, and digital financial services segments. However, the focus has shifted from AI and energy to Sea’s integrated flywheel effect and competitive moat. Conviction has somewhat weakened.

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Disclosure: None. This article was originally published at Insider Monkey.