Sea Limited is an appealing investment due to its three fast-growing operating segments.

The digital entertainment segment, known as "Garena," consistently generates positive earnings before interest, taxes, depreciation, and amortization (EBITDA). Garena's major driver is Free Fire, one of the world's most popular mobile games. In the first quarter, Garena boasted nearly 595 million quarterly active users, with 8.2% of them paying to play, a rate significantly higher than the industry average for mobile gaming.

Sea's second rapidly growing segment is SeaMoney, its digital financial services arm. Many countries where Sea operates are chronically underbanked, with limited access to basic financial services for businesses and consumers. SeaMoney addresses this issue by offering financial solutions, such as loans, in Southeast Asia.

The most promising segment is Shopee, Sea's e-commerce platform, operating in Southeastern Asia and Brazil. Shopee saw $23.6 billion in gross merchandise value (GMV) during the first quarter, translating to an annualized run-rate of $94.4 billion. For context, Shopee's GMV for the entire year of 2018 was $10 billion, highlighting its rapid growth.

If these three segments continue to perform well, Sea Limited can sustain annual sales growth of 15% or more and achieve triple-digit annualized earnings growth through 2028, according to Wall Street's consensus forecast.