Sea Limited (NYSE:SE) is one of the Top 10 Stocks to Buy According to Lakehouse Capital. The company’s capability to improve net take rates, mainly in the e-commerce segment, can fuel the profitability. With Shopee continuing to enhance the value proposition for merchants with the help of improved logistics, marketing tools, and customer reach, it can justify increased take rates without giving up the market share. Sea Limited (NYSE:SE) released its Q1 2025 results, wherein on the e-commerce front, Shopee delivered a record-high GMV and gross order volume. Shopee happens to be the leading e-commerce platform in Southeast Asia and Taiwan.
A close-up of a customer placing an order using the company’s e-commerce platform.
Sea Limited (NYSE:SE)’s robust execution of operational priorities, such as enhancing price competitiveness, improving service quality, and strengthening of content ecosystem, made Shopee competitive and differentiated. In e-commerce, gross orders totaled 3.1 billion for the quarter, reflecting 20.5% YoY growth, with GMV coming at US$28.6 billion in Q1 2025, increasing 21.5% YoY. As Shopee’s ecosystem matures, the platform could generate additional high-margin revenue streams, including advertising and value-added services for merchants. As a result, these offerings can help improve overall profitability without necessarily raising the take rates on transactions.
Lakehouse Capital, a Sydney-based investment manager, released its May 2025 investor letter. Here is what the fund said:
“Sea Limited (NYSE:SE) delivered another impressive result, with sustained momentum driving solid top-line growth and continued progress on profitability. Group revenue grew 30% to US$4.8 billion, driven by strong performance from the company’s e-commerce platform, Shopee, and its fintech business, Monee. Shopee further extended its market leadership across Asia and Brazil, with record GMV rising 22% to US$28.6 billion and continued improvement in its take rate, up 60 basis points to 12.3%. Monee accelerated its growth with their loan book rising 77% to US$5.8 billion, driven by a >50% increase in active borrowers to over 28 million whilst maintaining sound credit quality. Combined with strong operating leverage across all business units, this growth helped lift adjusted EBITDA 136% to US$947 million and continues to demonstrate Sea’s ability to deliver further profitable growth.”
While we acknowledge the potential of SE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SE and that has 100x 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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