Sea Limited (SE) shares have surged 45.5% year-to-date, surpassing the Zacks Internet Software industry (10.6%) and the Zacks Computer and Technology sector (1.1%). The company reports strong growth in its businesses, particularly in Shopee (e-commerce), Monee (digital financial services), and Garena (digital entertainment).
In Q1 2025, Shopee revenues rose 28.3% year-over-year to $3.5 billion, achieving a gross merchandise volume (GMV) of $28.6 billion (+21.5% YoY). Monee revenues increased by 57.1% to $787.1 million, while Garena generated $495.6 million (+8.2% YoY) and bookings soared 51.4% to $775.4 million. Adjusted EBITDA improved significantly across all segments.
The Zacks Consensus Estimate for SE’s Q2 2025 earnings is $1.03 per share, indicating a 123.91% increase compared to the previous year. Despite these growth metrics, the stock carries a Value Score of D, as it trades at a premium with a forward Price/Book ratio of 10.02X, compared to 6.26X for its industry peers. Analysts advise that investors may want to adopt a wait-and-see approach due to stiff competition and potential short-term profitability concerns.
