In This Article:
Sea Limited’s SE shares have gained 44.7% over the trailing six months, significantly outpacing the Zacks Computer & Technology sector’s return of 4.9% and the Zacks Internet Software industry’s appreciation of 14.8%.
SE shares have also outperformed industry peers, including HubSpot HUBS, Workday WDAY and nCino NCNO, in the same period.
Over the same timeframe, HubSpot, Workday and nCino shares have gained 25.1%, 11.9% and 7.8%, respectively.
SEA Limited’s strong performance is driven by consistent top-line growth, supported by the strength of its core segments, which include e-commerce (Shopee), digital financial services (SeaMoney) and digital entertainment (Garena).
Sea Limited Sponsored ADR Price and Consensus
Sea Limited Sponsored ADR price-consensus-chart | Sea Limited Sponsored ADR Quote
E-commerce & Digital Services Propel SE’s Prospects
Sea Limited's impressive performance is largely driven by substantial growth in its core businesses. These segments are pivotal to the company's success, each addressing critical market needs.
Shopee dominates the e-commerce space with rapid gross merchandise value growth and operational efficiency. This platform has demonstrated significant improvement, solidifying its position as a leader in Southeast Asia's e-commerce market, driven by growth in gross orders, highlighting Shopee's expanding user base and enhanced engagement.
Shopee increased its monetization by optimizing market dynamics in Southeast Asia, resulting in higher commission rates across the industry. This strategy has helped improve profitability and revenue per transaction while strengthening its position in the e-commerce market.
The third quarter was significant for Shopee, as its loan book grew 70% year over year, and it added 4 million first-time borrowers. Active loan users reached 24 million, up 60%. The non-performing loan ratio was stable at 1.2%. Sea Limited engages first-time borrowers through SPayLater, offering a small credit limit and short tenure on Shopee purchases.
SPX Express enhances e-commerce by providing fast delivery and cost efficiency, with 50% of orders in Asia delivered within two days. Improved costs in Asia and Brazil strengthen logistics. The rise of live streaming boosts the content ecosystem, supporting e-commerce growth.
The digital entertainment segment demonstrated significant growth potential, with total bookings increasing more than 24% in the third quarter of 2024. This momentum is driven by the success of Free Fire, one of the world's leading mobile games, which consistently attracts more than 100 million daily active users.
Free Fire has been one of the world's largest mobile games and continues to captivate users with high engagement and acquisition. In October 2024, it became the first online popular game to partner with Thailand's Zoological Park Organization, introducing the adorable baby pygmy hippo, Moo Deng, to its virtual world.