- SE has posted tremendous revenue growth rates since inception and since its IPO, driving stellar share returns.
- Growth has primarily been driven from aggressive spending in sales and marketing as Shopee expands.
- Underlying metrics for main growth driver Shopee have not improved for over six quarters, with the e-commerce segment still operating deep in the red.
- Future outlook for Shopee includes substantial investments to continue fueling growth, limiting a shift to profitability.
- SE is expensive for poor underlying metrics and thin margins propping up Shopee's growth, widening losses with little sign of inflecting near term, and some weakness in Garena.
For further details see:
Sea Limited: Profit-Taking Is Justified