Sea Limited Reports Strong Q3 Growth Amid Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2024
0mins
Should l Buy SE?
Source: Business Insider
Sea Limited's stock fell 4.95% and hit a 20-day低点 amid a broader market decline, with the Nasdaq-100 down 0.89% and the S&P 500 down 0.36%.
Despite the stock's decline, Sea Limited reported a 40% year-over-year revenue increase in Q3 2025, with significant growth in e-commerce and digital finance. The company's adjusted EBITDA rose by 68%, indicating improved profitability and a strong outlook for future performance, particularly in digital advertising and financial services.
The strong performance across all business segments reinforces Sea's market position and highlights its potential for continued growth, even as the overall market experiences weakness.
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Analyst Views on SE
Wall Street analysts forecast SE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SE is 184.58 USD with a low forecast of 138.00 USD and a high forecast of 226.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 108.570
Low
138.00
Averages
184.58
High
226.00
Current: 108.570
Low
138.00
Averages
184.58
High
226.00
About SE
Sea Limited is a consumer Internet company. The Company, through its subsidiaries, operates three core businesses of e-commerce, digital financial services, and digital entertainment, known as Shopee, SeaMoney and Garena. Its segments are e-commerce, digital financial services, and digital entertainment. The platform of Garena offers mobile and personal computer online games and develops mobile games for the global market. It offers e-sports and provides access to other entertainment content and social features, such as live-streaming of gameplay, user chat, and online forums. The platform of Shopee is a mobile-centric, social-focused marketplace. It provides users a shopping environment with integrated payment, logistics infrastructure, and seller services. SeaMoney provides digital financial services and products, including mobile wallet services, payment processing, credit, banking, and Insurtech. It operates in Indonesia, Taiwan, Thailand, Singapore, Malaysia, and the Philippines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Rebound: Sea Limited shares rose 2.1% to $108.49 on Thursday, breaking a six-day losing streak, reflecting market optimism regarding its upcoming earnings potential.
- Poor Annual Performance: Despite the rebound, Sea Limited's stock has fallen nearly 16% in 2025, contrasting with a 0.5% rise in the S&P 500 during the same period, indicating significant market pressures on the company.
- Analyst Ratings: According to Seeking Alpha, Sea Limited holds a Hold rating with a score of 2.8, where its profitability outlook is rated A-, but its momentum factor is rated D-, suggesting concerns about its short-term performance.
- Analyst Support: Despite the risks, 31 Wall Street analysts rated Sea Limited as Buy or higher, demonstrating confidence in the company's long-term growth potential amidst current challenges.
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- Significant Performance Growth: Sea Limited's overall revenue increased by 40% year-over-year in Q3 2025, with e-commerce revenue up 35% and digital finance loan balances growing nearly 70%, showcasing strong performance across all business segments and reinforcing its market position.
- Improved Profitability: Adjusted EBITDA grew by 68% year-over-year, reflecting a notable enhancement in Sea's profitability; despite changing market perceptions of its valuation, it remains considered attractively valued relative to its growth prospects.
- Strong Advertising Revenue: Shopee's advertising revenue surged over 70%, becoming a high-margin growth driver, indicating significant potential in the digital advertising space that could further boost overall performance in the future.
- Broad Market Opportunities: The Monee platform is experiencing strong loan growth, particularly from outside the Shopee ecosystem, with this segment currently representing less than 10% of total loans, highlighting Sea's expansion potential in financial services, akin to PayPal's early rapid growth.
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- Strong Financial Performance: Despite achieving a 38% revenue growth and profitability across all segments in Q3, net profit fell short of market expectations due to increased tax expenses, highlighting profitability pressures amid strong operational momentum.
- Share Buyback Program: The company announced a $1 billion share buyback plan, and despite recent stock weakness, it maintains a strong balance sheet with net cash and negative net debt, indicating long-term financial health and stability.
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- Cloud Computing Profit Support: In the first nine months of 2025, $33 billion of Amazon's operating income came from AWS, which, while only 18% of total revenue, provides crucial funding for innovation and competition.
- Growth Potential of Sea Limited: Sea Limited reported nearly $1.2 billion in net income in the first three quarters of 2025, a significant increase from $207 million in the same period last year, showcasing its robust performance in the Southeast Asian market.
- Investor Choice Considerations: For risk-averse investors, Amazon's stability and lower valuation make it a more suitable choice, while those willing to take on more risk may prefer Sea Limited's long-term growth potential.
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- Amazon's Cloud Computing Edge: In the first nine months of 2025, Amazon's AWS generated $33 billion in operating income, accounting for only 18% of total revenue, yet it underpins the company's innovation and competitive capabilities, showcasing its strong profitability in the cloud sector.
- Sea Limited's Growth Potential: Sea Limited achieved nearly $1.2 billion in net income in the first three quarters of 2025, a significant increase from $207 million in the same period last year, demonstrating robust performance in the Southeast Asian market despite competitive pressures and slow gaming growth.
- Investment Risk Comparison: Amazon's P/E ratio stands at 34, below historical levels, making it suitable for risk-averse investors, while Sea Limited's P/E ratio is 54, which, despite being high, attracts growth investors willing to take on more risk due to its rapid growth potential.
- Market Leadership Position: Amazon's leadership in e-commerce and cloud computing provides ongoing growth opportunities, while Sea Limited seeks rapid expansion in emerging markets, requiring investors to choose based on their risk tolerance.
See More
Sea Limited Shares Rebound, Ending Six-Day Losing Streak
- Stock Rebound: Sea Limited shares rose 2.1% to $108.49 on Thursday, breaking a six-day losing streak, reflecting market optimism regarding its upcoming earnings potential.
- Poor Annual Performance: Despite the rebound, Sea Limited's stock has fallen nearly 16% in 2025, contrasting with a 0.5% rise in the S&P 500 during the same period, indicating significant market pressures on the company.
- Analyst Ratings: According to Seeking Alpha, Sea Limited holds a Hold rating with a score of 2.8, where its profitability outlook is rated A-, but its momentum factor is rated D-, suggesting concerns about its short-term performance.
- Analyst Support: Despite the risks, 31 Wall Street analysts rated Sea Limited as Buy or higher, demonstrating confidence in the company's long-term growth potential amidst current challenges.
See More
Sea Limited's Optimistic Outlook for 2026
- Significant Performance Growth: Sea Limited's overall revenue increased by 40% year-over-year in Q3 2025, with e-commerce revenue up 35% and digital finance loan balances growing nearly 70%, showcasing strong performance across all business segments and reinforcing its market position.
- Improved Profitability: Adjusted EBITDA grew by 68% year-over-year, reflecting a notable enhancement in Sea's profitability; despite changing market perceptions of its valuation, it remains considered attractively valued relative to its growth prospects.
- Strong Advertising Revenue: Shopee's advertising revenue surged over 70%, becoming a high-margin growth driver, indicating significant potential in the digital advertising space that could further boost overall performance in the future.
- Broad Market Opportunities: The Monee platform is experiencing strong loan growth, particularly from outside the Shopee ecosystem, with this segment currently representing less than 10% of total loans, highlighting Sea's expansion potential in financial services, akin to PayPal's early rapid growth.
See More
Stocks to Consider Buying in 2026: Insights from Our Roundtable Experts, Including DoorDash and LVMH
Stock Picks Overview: The second installment of the 2026 Barron’s Roundtable features 30 stock picks from five investment experts, highlighting both well-known companies and lesser-known options.
Familiar Names Included: Among the stock picks are recognizable brands such as Home Depot, Starbucks, and Nike, indicating a mix of established and emerging investment opportunities.
Biodegradable Innovation: The article hints at a British company that has recently acquired a manufacturer of biodegradable sneaker midsoles, showcasing a trend towards sustainable products in the footwear industry.
Investment Insights: The Roundtable serves as a platform for sharing diverse investment strategies and insights, appealing to both seasoned investors and those looking to explore new market trends.
See More
Sea Limited (SE) Shares Decline for Seventh Session, Down Over 4.2% Year-to-Date
- Stock Price Decline: Sea Limited's shares closed down 1.07% at $123.91 on Thursday, marking a seventh consecutive session of decline with a total drop exceeding 12.35%, significantly underperforming the S&P 500's 0.26% decrease.
- Strong Financial Performance: Despite achieving a 38% revenue growth and profitability across all segments in Q3, net profit fell short of market expectations due to increased tax expenses, highlighting profitability pressures amid strong operational momentum.
- Share Buyback Program: The company announced a $1 billion share buyback plan, and despite recent stock weakness, it maintains a strong balance sheet with net cash and negative net debt, indicating long-term financial health and stability.
- Analyst Optimism: Wall Street analysts remain largely bullish on Sea, with 31 rating the stock as Buy or higher, reflecting confidence in its future growth despite intense e-commerce competition and macroeconomic volatility.
See More
Amazon vs. Sea Limited: A Choice Between Growth and Risk
- Amazon's Market Leadership: Despite single-digit growth in online sales, Amazon's subscription, third-party seller, and digital advertising segments achieved double-digit growth, demonstrating its strong competitive position in e-commerce and cloud computing.
- Cloud Computing Profit Support: In the first nine months of 2025, $33 billion of Amazon's operating income came from AWS, which, while only 18% of total revenue, provides crucial funding for innovation and competition.
- Growth Potential of Sea Limited: Sea Limited reported nearly $1.2 billion in net income in the first three quarters of 2025, a significant increase from $207 million in the same period last year, showcasing its robust performance in the Southeast Asian market.
- Investor Choice Considerations: For risk-averse investors, Amazon's stability and lower valuation make it a more suitable choice, while those willing to take on more risk may prefer Sea Limited's long-term growth potential.
See More
Amazon vs. Sea Limited: Investment Choices and Risk Analysis
- Amazon's Cloud Computing Edge: In the first nine months of 2025, Amazon's AWS generated $33 billion in operating income, accounting for only 18% of total revenue, yet it underpins the company's innovation and competitive capabilities, showcasing its strong profitability in the cloud sector.
- Sea Limited's Growth Potential: Sea Limited achieved nearly $1.2 billion in net income in the first three quarters of 2025, a significant increase from $207 million in the same period last year, demonstrating robust performance in the Southeast Asian market despite competitive pressures and slow gaming growth.
- Investment Risk Comparison: Amazon's P/E ratio stands at 34, below historical levels, making it suitable for risk-averse investors, while Sea Limited's P/E ratio is 54, which, despite being high, attracts growth investors willing to take on more risk due to its rapid growth potential.
- Market Leadership Position: Amazon's leadership in e-commerce and cloud computing provides ongoing growth opportunities, while Sea Limited seeks rapid expansion in emerging markets, requiring investors to choose based on their risk tolerance.
See More
