2 Wrinkles in Sea Limited’s Great Earnings Report -- and Why You Should Probably Ignore Them

Shares of Sea Limited (NYSE: SE) shot up by 8.7% on Tuesday after the Southeast Asian internet company delivered a sparkling second-quarter earnings report. Sea handily beat even optimistic analysts forecasts for adjusted revenue growth, which came in at 93.4% and reached $1.29 billion -- a whopping $230 million ahead of expectations.

Yet for all of the well-deserved enthusiasm around Sea's growth, there are two caveats that may be reasons for caution. Investors should be aware of these potential pitfalls going forward, especially since Sea is unprofitable and trades at a high price-to-sales ratio of 23.

Image source: Getty Images.

Source Fool.com