Sea Limited's Fate Depends on This One Mobile Game
Sea Limited (NYSE: SE), an e-commerce and video game company based in Singapore, went public at $15 a share in late 2017. Its stock price subsequently surged to about $230 per share, boosting its market cap to over $120 billion and making it Singapore's most valuable company.
I was initially skeptical about Sea -- it was deeply unprofitable, faced intense competition from Alibaba's (NYSE: BABA) Lazada, and its valuations were frothy. But after tracking Sea's growth over the past several quarters, I finally started a position this January.
I turned bullish on Sea for two main reasons. First, its e-commerce platform Shopee more than doubled its orders year over year in the first nine months of 2020 and surpassed Lazada in total downloads. Second, Sea's adjusted EBITDA turned positive over the past two quarters as Shopee narrowed its losses per order while its gaming segment, Garena, raked in higher profits to offset its e-commerce losses.
Source Fool.com
