How Investors Are Reacting To Sea (SE) Turning Profitable and Gaining Momentum in Southeast Asia

• Sea Limited recently presented at the 12th Milken Institute Asia Summit in Singapore, where CEO Forrest Li highlighted the company’s accelerating growth and shift to significant profitability, with annual revenue rising 30% year-on-year to US$17.9 billion and operating income moving from a loss to a profit.
• Amid eased regulatory pressures and less intense competition in Southeast Asia, Shopee’s operational improvement and higher order volumes have strengthened Sea’s overall business position.
• We'll explore how Sea’s financial turnaround and improved market conditions influence its long-term investment narrative.

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Sea Investment Narrative Recap

To see the long-term opportunity in Sea Limited, you have to believe in the ongoing digital transformation sweeping Southeast Asia and Latin America, where rising internet adoption and consumer demand are fueling e-commerce and fintech expansion. The latest news of accelerated revenue and operating profits after years of losses is an encouraging sign for believers, but it does not eliminate near-term concerns: the most important catalyst remains Shopee’s ability to drive profitable growth, while the biggest risk is the return of intense competitive pressure in key markets. At this time, the impact of the news leans more toward solidifying optimism than fundamentally changing these core drivers.

The most relevant recent development is Sea’s first-half 2025 earnings, which showed revenue of US$10,100.58 million and net income of US$809.02 million, both sharply higher than last year. This headline growth supports Shopee’s improving operating leverage but leaves questions about whether these gains are sustainable if competitors re-enter the market with aggressive discounting or regulatory risks resurface.

But while the company’s profitability story is gaining traction, investors should also be mindful that...

Read the full narrative on Sea (it's free!)

Sea's narrative projects $33.2 billion revenue and $4.7 billion earnings by 2028. This requires 19.7% yearly revenue growth and a $3.5 billion earnings increase from $1.2 billion today.

Uncover how Sea's forecasts yield a $202.12 fair value, a 10% upside to its current price.

Exploring Other Perspectives

According to the Simply Wall St Community, 18 member estimates for Sea Limited’s fair value span from US$150 to US$290.80 per share. This breadth of opinion reflects how investor outlooks differ, especially around Shopee’s growth potential and the risk of renewed competition impacting earnings, encouraging you to explore several viewpoints before reaching your own conclusion.

Explore 18 other fair value estimates on Sea - why the stock might be worth as much as 58% more than the current price!

Build Your Own Sea Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sea research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Sea research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sea's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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