Sea Limited: No Love
Saranya Yuenyong Introduction Sea Limited is a Singaporean-based tech conglomerate that operates three high-quality companies in three secular markets: Garena - a global game developer and publisher of mobile and PC games including Free Fire, Arena of Valor, and Call of Duty Mobile. Shopee - the leading e-commerce platform in Southeast Asia, Taiwan, and Brazil. SeaMoney - a fast-growing digital financial services provider in Southeast Asia. These services include ShopeePay, SeaBank, and SeaInsure. The company was one of the most intriguing growth stories in the early days of the pandemic. However, growth has slowed significantly over the last few quarters, so much so that it led to one of the most devastating crashes in the growth stock universe. The funny thing is that investors were buying the stock aggressively back when the stock was trading at nosebleed valuations. Investors loved it at $300. Shouldn't they love it even more at $40?