SEA is a great growth stocks to add to your buy list!

Singapore-based Sea Limited is a growth stock that’s had, shall we say, a mixed year. This stock has fallen nearly 50% from the company’s peak in Q4 of last year. Accordingly, this is a growth stock that many investors seem to think is on the ropes right now.

Sea has been using its highly profitable video game segment (publisher Garena, responsible for the international hit Free Fire) to invest in its e-commerce app Shopee. This e-commerce segment is growing at a triple-digit percentage rate but highly unprofitable at this point, and Sea is entering new markets at a rapid pace -- including Latin America, Poland, Spain, and India.

So what have the get?

Sea Limited is looking to become a global e-commerce company. Its e-commerce business -- Shopee -- got its start in Singapore in 2015, but it has since expanded across the world. Shopee is now a dominant e-commerce player across all of Southeast Asia and Latin America, and even has ties in India and Europe. With such a broad reach, Shopee became the most downloaded shopping app in the world in 2021.

As we all know, much of the recently downtrend has been attributed to the current environment, which doesn’t favor high-growth tech stocks. Rising interest rates and the macro environment are certainly unfavorable for many companies in Sea Limited’s shoes. However, other longer-term investors may like the value underpinning this stock, following this drop.

What's more, according to the U.S. International Trade Administration, global e-commerce sales made up 18% of global retail sales in 2020. This figure is expected to increase to 22% of global retail sales by 2024, demonstrating that -- slowly but surely -- e-commerce is becoming a primary way consumers order goods in the modern era.E-commerce is widely adopted in the U.S. for the most part, but the true growth in e-commerce comes from international regions. Many parts of the world barely rely on e-commerce for their retail needs, but as these regions begin to rapidly adopt online retail, the SEA could reap major benefits.

Let's see some data.

Revenue for its e-commerce segment reached $1.5 billion in the third quarter of 2021, which grew a whopping 134% year over year. Total revenue also grew 122% year over year, helped by its two other strong businesses that are growing at triple-digit rates. Many companies growing revenue at triple-digit rates are micro-cap companies, but Sea Limited is a large and established business -- its market cap is $103 billion -- making its growth that much more impressive.

The company continuously puts up strong top-line growth in all parts of its business, yet it is valued at just 12 times sales -- the lowest valuation that Sea has seen in over a year. Despite the stock falling drastically over the past few months, Sea Limited is succeeding on all fronts of its business, making it one of my best ideas to buy and hold for decades.

Just buy the SEA guys! Do the right thing! GLTA

$Sea Ltd(SE)$