Sea Limited (SE): A Bull Case Theory

We came across a bullish thesis on Sea Limited on Rittik’s Substack by Anand Capital. In this article, we will summarize the bulls’ thesis on SE. Sea Limited's share was trading at $190.46 as of September 15th. SE’s trailing and forward P/E were 101.06 and 45.87 respectively according to Yahoo Finance.

Sea Limited represents a compelling investment in Southeast Asia’s rapidly digitizing economy, having evolved from a gaming company into a diversified digital ecosystem spanning e-commerce, gaming, and financial services. The Singapore-based technology conglomerate achieved a remarkable financial turnaround in 2024, delivering diluted earnings per share of US$0.74 versus a loss of US$0.25 in 2023, highlighting a clear inflection to sustainable profitability.

Shopee, the company’s e-commerce arm, commands 46.9% of the Southeast Asian market, supported by an integrated logistics network, strong seller ecosystem, and mobile-first platform design, while Garena maintains robust gaming engagement with nearly 595 million quarterly active users. SeaMoney, the digital financial services segment, is the fastest-growing business, leveraging ecosystem integration, mobile-native design, and regulatory approvals to expand payments, credit, and banking services.

Sea Limited’s market leadership, ecosystem integration, and data-driven personalization create strong competitive moats against regional and global rivals, including Lazada, GoTo, and TikTok Shop. The company has demonstrated operational efficiency and robust cash generation, closing 2024 with $10.4 billion in cash and short-term investments while converting earnings into positive free cash flow. Financial projections suggest continued revenue growth from $19.4 billion in 2024 to $36–50 billion by 2027, with operating margins expanding toward 12–15% and EPS reaching $3.50–5.00 under base and bull case scenarios.

Strategic opportunities include e-commerce market expansion, SeaMoney scaling, and international growth in Latin America, while risks relate to competition, regulatory uncertainty, and macroeconomic exposure. Sea Limited’s strong balance sheet, diversified revenue streams, and proven execution provide a high-conviction investment case, with a 12–18 month price target of $85–95 and a three-year potential annualized return of 25–35%, offering attractive risk-adjusted upside for investors seeking exposure to Southeast Asian digital transformation.

Previously we covered a bullish thesis on Sea Limited (SE) by Wolf of Harcourt Street in May 2025, which highlighted the company’s earnings rebound driven by Shopee’s growth, Garena’s user resurgence, and Sea Money’s disciplined lending. The stock has appreciated approximately 16.09% as of May 2025 because operational scale and cost efficiencies materialized. The thesis still stands, while Anand Capital emphasizes SE’s ecosystem transformation, market leadership, and financial turnaround.

Sea Limited is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 102 hedge fund portfolios held SE at the end of the second quarter which was 84 in the previous quarter. While we acknowledge the potential of SE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.