SE - Sea Limited Q1: On The Verge Of A Decisive Breakout
2024-05-18 08:30:00 ET
Summary
- Sea Limited's Q1 earnings release underscores a solid profitability inflection.
- Shopee has returned closer to reaching adjusted EBITDA profitability.
- SeaMoney has demonstrated its ability to help drive Sea Limited's growth further.
- I explain why SE's recent outperformance isn't a fluke, suggesting the market has gotten it right.
- With SE on the verge of a potential breakout, I explain why holders should remain invested.
Sea Limited's Turnaround Is On Track
Sea Limited ( SE ) investors who ignored the market pessimism have been rewarded as SE has continued to outperform the S&P 500 ( SPX ) ( SPY ) since SE bottomed in August 2023. However, SE consolidated along the $35 level through mid-January 2024, tiring investors as SE hovered close to a four-year low. Despite that, I emphasized SE reached peak pessimism in my previous bullish SE update in early March 2024. I assessed that Sea Limited could continue its upward recovery momentum, even as competitive headwinds in its operating regions could intensify. Therefore, I've not been surprised by SE stock's relative outperformance, corroborating my analysis of its long-term bottom. ...
Sea Limited Q1: On The Verge Of A Decisive Breakout