Did You Miss Out on Amazon? Here's Another Unstoppable E-Commerce Stock With a Potential Upside of 133%

Amazon (NASDAQ: AMZN) was founded in 1994 to sell books using the internet. Its e-commerce platform now sells hundreds of millions of different products, and the company has expanded into other lucrative industries like cloud computing and digital advertising.

Amazon stock has soared by 850% over the last 10 years on the back of significant growth in the company's financial results, catapulting it to a $2.2 trillion market capitalization. But if you missed out on this incredible run, I have some good news: There might be another e-commerce company with significant growth potential, and it's currently worth just $90 billion.

Sea Limited (NYSE: SE) operates Southeast Asia's most dominant e-commerce platform, but the company is also a global leader in mobile gaming, and its digital financial services segment is growing at a lightning-fast pace right now.

Sea stock has soared by more than 102% over the past year, and here's why I think it could soar by another 133% from its closing price on June 23 ($153.52).

Image source: Getty Images.

Sea is becoming a tech conglomerate, just like Amazon

Sea's e-commerce platform is called Shopee, and it processed 3.1 billion orders worth $28.6 billion during the first quarter of 2025 (ended March 31) alone. Shopee is focusing on many of the same things that made Amazon.com so successful, like offering ultra-low prices and rapid delivery.

Shopee also launched VIP memberships recently, which offer free delivery and priority service for a small monthly subscription fee. It's a similar program to Amazon Prime, and Sea says that over 1 million customers had already signed up as of the end of March.

Sea is also supercharging Shopee's growth by investing in synergies like financial services. The company's Monee platform (formerly called SeaMoney) lends money to merchants on Shopee to help them grow their businesses, and it also offers buy now, pay later loans to boost customers' buying power. Monee's loan book hit an all-time high of $5.8 billion in Q1, which was a whopping 76.5% increase from the year-ago period.

That number could grow significantly from here, because Monee is starting to offer loans to businesses and consumers outside of the Shopee ecosystem, which drastically increases its addressable market.

Beyond e-commerce and financial services, Sea is also the parent company of Garena, which is one of the mobile gaming industry's most successful development studios. It created Free Fire, which continues to be the world's most popular title by downloads and active users. Garena had 661.8 million active users during Q1, which was up 11.3% from the year-ago period.

However, that number was still below its quarterly peak of 729 million users from 2021, when gamers spent more time online due to pandemic-related lockdowns and social restrictions.

Monee could become Sea's profitability engine

Sea generated $4.8 billion in total revenue during the first quarter of 2025, which was a 29.6% increase from the year-ago period. Here's how that number was broken down.

Data source: Sea Limited.

Simply put, e-commerce is the largest contributor to Sea's total revenue, but digital financial services is the fastest-growing piece of the organization by a wide margin.

E-commerce typically comes with razor-thin profit margins, so the expansion into more lucrative segments like financial services is critical for Sea's bottom line. This is another move out of Amazon's playbook -- its cloud computing segment is the profitability engine behind the entire company, despite accounting for a minority of its revenue.

Sea's preferred measure of profitability is adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). It's a non-GAAP (non-generally accepted accounting principles) metric that excludes one-off and non-cash expenses like stock-based compensation.

During the first quarter, Sea's e-commerce segment generated $264.4 million in adjusted EBITDA, whereas its digital financial services segment delivered $241.1 million. In other words, Monee is generating almost as much profit as Shopee -- on a whopping 77% less revenue. That means Monee has the potential to absolutely supercharge Sea's bottom line if it continues to grow its revenue at the current pace.

Why Sea stock could soar by 133%

Sea stock closed at $153.52 on June 23, so it's still way below its record high of $357.78 from 2021. The stock was overvalued then with its price-to-sales (P/S) ratio soaring above 30, but the company's rapid revenue growth has played a key role in bringing that ratio down to just 5.3 today.

Plus, Wall Street's consensus estimate (provided by Yahoo! Finance) suggests that Sea's annual revenue could grow to $25.3 billion in 2026, placing its stock at a forward P/S ratio of just 3.6.

SE PS Ratio data by YCharts.

If Sea stock were to climb 133% to reclaim its all-time high of $357.78 over the next 18 months (by the end of 2026), its P/S ratio would be around 8.4 -- assuming Wall Street's revenue forecast turns out to be accurate. That P/S ratio would still be below its long-term average of 9.1, suggesting the stock might still be undervalued.

Sea's P/S ratio has climbed over the past year, which suggests investors are willing to pay an increasingly higher valuation for the company's stellar operating performance. Therefore, as long as Sea continues to execute at a high level, I think its stock could soar by 133% to reclaim its record level from 2021 over the next 18 months.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Sea Limited. The Motley Fool has a disclosure policy.