Sea (SE) Stock Forecast & Price Target

Sea has demonstrated robust performance in its e-commerce sector, with gross merchandise value (GMV) expanding by 25% year-over-year, coupled with a 65 basis point increase in the third-party take rate. The fintech segment, SeaMoney, has also shown significant growth, reporting a 70% year-over-year increase in revenue and a 50% or greater growth in adjusted EBITDA. Additionally, Garena's strong momentum is reflected in a 23% increase in bookings, suggesting sustained demand and financial health across Sea's diverse business segments.

Sea's EBITDA margin has stagnated at 0.8% of gross merchandise value (GMV), indicating limited profitability despite substantial reinvestment efforts. This consistent performance raises concerns about the sustainability of returns, particularly in the competitive e-commerce landscape where costs are rising. Additionally, the reliance on reinvestment without corresponding improvement in margins suggests potential challenges in scaling operations effectively.