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In a remarkable display of resilience and growth, Sea Limited (NYSE:SE)’s stock has surged to a 52-week high, reaching $139.34, with a market capitalization of $76 billion. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $100 to $180. This significant milestone underscores the company’s strong performance over the past year, with a 137.33% return and robust revenue growth of 28.75%. Investors have shown increasing confidence in Sea Limited’s business model and future prospects, propelling the stock to new heights and reflecting a robust recovery from previous lows. The company’s strategic initiatives and expansion efforts appear to be paying off, as evidenced by its GOOD financial health score from InvestingPro, which offers 15+ additional insights about Sea Limited’s performance and valuation metrics in its comprehensive Pro Research Report.
In other recent news, Sea Ltd reported a 37% year-over-year increase in revenue for the fourth quarter of 2024, reaching $5 billion, surpassing revenue forecasts. The company also reported a full-year net income of $448 million, up from $163 million in 2023. Shopee, Sea Ltd’s e-commerce platform, achieved a Gross Merchandise Value (GMV) of over $100 billion for the first time, indicating strong growth in its e-commerce segment. Analysts have responded positively to these results, with TD Cowen, Bernstein SocGen Group, and Jefferies all raising their price targets for Sea Ltd to $120, $145, and $157, respectively.
Sea Ltd’s digital financial services segment also showed significant growth, with its loan book expanding to $5 billion and annual profits reaching approximately $850 million. Bernstein SocGen Group highlighted the company’s robust ecommerce strategy and significant growth in its fintech vertical, maintaining an Outperform rating. Meanwhile, Jefferies noted the potential in Sea Ltd’s digital financial services, particularly in on and off-Shopee loans, citing considerable unmet demand for credit.
Despite these positive developments, Sea Ltd’s digital entertainment arm, Garena, underperformed with a 4% revenue shortfall against consensus estimates. However, the management forecasts a 10% or more increase in user numbers and bookings for 2025. Sea Ltd continues to project optimism, with expectations of 20% GMV growth in ecommerce and double-digit growth in gaming for 2025.
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