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On Tuesday, Sea Ltd (NYSE:SE) shares received a positive assessment from Jefferies, as the firm raised its price target for the company to $157 from the previous $131 while maintaining a Buy rating. The upward revision reflects a more optimistic outlook for Sea Ltd’s future performance. The stock, currently trading at $132.97, has demonstrated remarkable momentum with a 129% return over the past year. According to InvestingPro analysis, Sea Ltd maintains a GOOD financial health score, supported by strong fundamentals and growth metrics.
The endorsement comes on the heels of Shopee, Sea Ltd’s e-commerce platform, delivering a robust set of results and providing guidance for 2025 that surpassed analyst expectations. According to Jefferies, Shopee has distinguished itself in the market through competitive pricing and engaging content. The company’s revenue growth of 20.06% in the last twelve months reflects this strong market position. InvestingPro subscribers have access to 14 additional exclusive insights about Sea Ltd’s growth trajectory and market position.
In the logistics sector, Sea Ltd’s SPX service has reportedly achieved cost efficiencies without compromising on service quality, indicating a strong operational performance. Furthermore, the firm sees significant potential for Sea Ltd’s digital financial services (DFS), particularly in the area of on and off-Shopee loans, which could tap into the considerable unmet demand for credit.
The gaming segment of Sea Ltd, led by its popular title Free Fire (FF), continues to exhibit solid growth. This is attributed to an expanding gamer base and increased user engagement, factors that contribute to the company’s robust performance in the digital entertainment industry.
Jefferies’ optimistic stance on Sea Ltd is based on the company’s better-than-expected outlook, as articulated by the analyst: "Shopee reported a beating set of results and 2025 guidance exceeded expectations. By segment, Shopee stands out on price competitiveness and content. On logistics, SPX achieved cost efficiencies with good service quality. For DFS, there is a lot of potential for on/off-Shopee loans amid underserved credit demand. For Garena, FF maintains solid growth on expanding gamer base and engagement. Maintain Buy and raise PT on better-than-expected outlook."
In other recent news, Sea Limited reported significant financial results for the fourth quarter of 2024, with a 37% increase in revenue year-over-year, reaching $5 billion. Despite falling short of earnings per share expectations at $0.39 compared to the forecasted $0.41, the company exceeded revenue projections, which were anticipated at $4.62 billion. Sea Limited’s full-year revenue for 2024 was $16.8 billion, reflecting strong growth in e-commerce and digital entertainment. The company’s net income for the year rose to $448 million, up from $163 million in 2023. In addition, Sea’s digital financial services and gaming segments are expected to continue their growth trajectory. Analyst feedback from firms like Goldman Sachs and Citigroup (NYSE:C) highlighted the company’s solid performance and growth potential. The company’s Shopee platform reported a gross merchandise value surpassing $100 billion for the first time, marking a significant milestone. Additionally, Sea Limited’s digital financial services segment achieved a 55% year-over-year increase in revenue for the fourth quarter, reaching $733 million.
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