Sea Limited: Sell-Off Creates An Attractive Investment Opportunity For Long-Term Investors

Simple Investing
2023-11-24

Summary

  • One of the most important takeaways from 3Q23 was management's strategy for Shopee, which is to maximize long-term profitability through strong market leadership and scale.
  • To achieve their long-term objective of maximizing profitability in the long run, the management team looks at three key operational factors, which are growth, current profitability and market share gain.
  • Sea Limited is in an investment mode today, given rising competitive pressures to ensure it maintains its scale and market leadership for tomorrow.
  • The company is investing in e-commerce live streaming and logistics to drive growth, market share gain, and improve user experience.
  • I continue to see Sea Limited as an attractive investment for long-term investors given the quality of the management team and the continued investments it makes in its business to drive long-term sustainable growth and grow its competitive moat.

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I have looked through and reviewed the 3Q23 earnings results for Sea Limited (NYSE:SE) and in this article, I will be highlighting key points and my thoughts about the opportunity.

Was the sell-off post earnings justified?

To form a

Long-term view to maximize returns for shareholders

Investing in a sustainable way

Current investment in a changing environment

Where is Shopee investing in today?

Brazil

3Q23 results

GAAP revenue (Sea Limited)

Adjusted EBITDA (Sea Limited)

E-commerce segment

E-commerce metrics (Sea Limited)

Digital Entertainment segment

Digital entertainment metrics (Sea Limited)

Digital financial services

How efficient is the current sales and marketing spend?

Sea Limited sales and marketing and revenue growth for the e-commerce segment (Author generated)

How are the results of the investment thus far?

Valuation

Conclusion

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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