Is Sea Limited (SE) A Good Stock To Buy Now?

We came across a bullish thesis on Sea Limited on GabGrowth’s Substack. In this article, we volition summarize the bulls’ thesis on SE. Sea Limited's share was trading astatine $88.26 as of March 4th. SE’s trailing and forward P/E were 45.94 and 27.25 respectively according to Yahoo Finance.

magicinfoto / Shutterstock.com

Sea Limited, done its subsidiaries, operates as a user net institution successful Southeast Asia, Latin America, the remainder of Asia, and internationally. SE is presently experiencing a 38% drawdown from its September 2025 high, prompting concerns astir Shopee, its halfway e-commerce concern that drives 72% of revenues.

Despite a dip successful operating profits implicit the past 2 quarters, this diminution is not indicative of a repetition of the COVID-era shock. During the pandemic, Sea benefited from artificially elevated request and engagement, which normalized post-2023, requiring the institution to pivot toward profitability done selling cuts and operational optimization.

In contrast, the 2025 dip reflects deliberate reinvestment into logistics, fulfillment, seller incentives, and enlargement successful Brazil, underpinned by beardown portion economics and sustainable profitability. Shopee’s competitory presumption is further reinforced against TikTok Shop, which, though increasing rapidly and doubling its GMV successful Southeast Asia, inactive trails Shopee successful bid and parcel volumes. Shopee’s advantages prevarication successful hunt intent-driven purchases, which foster repeat behavior; proprietary logistics through SPX Express, ensuring operational power and outgo stability; and a broader merchandise assortment catering to high-value categories, dissimilar TikTok Shop’s content-led, impulse-focused platform.

Additionally, Shopee is strategically layering societal commerce capabilities done partnerships with YouTube and Meta, enhancing find without undermining its transactional moat. These structural advantages suggest that Shopee remains the default level for mundane e-commerce successful the region, and TikTok Shop, portion competitory successful niche verticals, is improbable to displace it. Overall, the drawdown appears driven much by sentiment than fundamentals, with the institution positioned to prolong maturation and profitability, making the existent banal terms an charismatic introduction constituent for semipermanent investors.

Previously, we covered a bullish thesis connected Sea Limited (SE) by Global Equity Briefing successful May 2025, which highlighted Shopee’s standard advantages, SPX Express logistics, cross-platform synergies with Garena and Monee, and beardown gross and nett income growth. SE’s banal terms has depreciated by astir 46.2% since our sum slowing maturation successful integer amusement and wide diminution successful Asian markets. GabGrowth shares a akin presumption but emphasizes that caller borderline dips bespeak deliberate reinvestments, not a repetition of COVID-era shocks.