To The Moon

$Sea Ltd(SE)$ 

Trading $SE after earnings

$Sea Ltd(SE)$ Sea Limited has had some ups and downs in recent quarters, with missed earnings consensus in the last two quarters. If the company rallies after earnings, I would definitely short the bounce, but if it drops after earnings, I would consider buying call ${{03aaff2655334bc1b7183e3978fc8699}}$SE 20230317 53.0 CALL$   at its support level of around 53 (refer to chart below). The latter is the more likely scenario given that the stock has rose more than 30% year to date.

Sea Limited performance

In terms of the company's recent performance, Sea Limited has shown strong revenue growth and gross profit expansion over the past four quarters, driven by the company's digital entertainment and e-commerce segments. Although the company has continued to report net losses, these losses have generally been shrinking over time as the company's operations scale.

Garena, Shopee, and SeaMoney

Looking at its three main businesses, Garena, Shopee, and SeaMoney, Shopee is particularly noteworthy as it has become one of the largest e-commerce platforms in Southeast Asia. However, there are concerns around the usability of Shopee Pay, as it is troublesome withdrawing their money from the platform. In addition, most of its vouchers can only be used with shopee pay and there is a fee to top up shopee pay with credit card, making it difficult to buy on shopee and take advantage of credit card’s miles or cashback at the same. It's important to note that customer satisfaction and user experience are crucial factors in the success of any e-commerce platform, so this is something to keep an eye on.

Prospects

In terms of prospects, Sea Limited has shown strong growth in recent years, particularly in its Shopee and SeaMoney businesses. The company has also expanded into new markets, such as Brazil, which could provide further growth opportunities. However, as with any investment, it's important to consider both the strengths and weaknesses of the company.

Conclusion

Overall, it's clear that Sea Limited has had some challenges in recent quarters, but the company's strong revenue growth and gross profit expansion show that it has potential for growth. If you're considering trading the stock, it's important to keep an eye on its performance, particularly in the Shopee and SeaMoney businesses, and to consider both the company's strengths and weaknesses.