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Investing.com -- Sea Limited shares surged 9.4% premarket on Tuesday after the Southeast Asian tech firm reported second-quarter revenue that significantly exceeded analyst expectations, despite an earnings miss.
The company posted revenue of $5.3 billion for the quarter ended June 30, 2025, soaring 38.2% year-over-year and handily beating the consensus estimate of $4.55 billion. However, adjusted earnings per share came in at $0.65, falling short of analysts’ expectations of $0.77. Net income reached $414.2 million, a dramatic improvement from $79.9 million in the same period last year.
Sea’s e-commerce platform Shopee continued its strong performance with gross merchandise value (GMV) increasing 28.2% year-over-year to $29.8 billion, while gross orders grew 28.6% to 3.3 billion. The digital financial services segment saw revenue jump 70% to $882.8 million, while digital entertainment bookings rose 23.2% to $661.3 million.
"All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year," said Forrest Li, Sea’s Chairman and Chief Executive Officer. "Given the high potential of our markets and the stage we are at in our business now, we will continue to prioritize growth, which will pave the way for us to maximize our long-term profitability."
The company’s digital financial services arm reported consumer and SME loans principal outstanding of $6.9 billion, up 94% YoY, while maintaining a low non-performing loan ratio of 1.0%. Meanwhile, the digital entertainment segment saw quarterly active users increase 2.6% to 664.8 million, with paying users rising 17.8% to 61.8 million.
Total (EPA:TTEF) adjusted EBITDA reached $829.2 million, representing an 84.9% increase from $448.5 million in the second quarter of 2024. The e-commerce segment achieved a significant turnaround, generating adjusted EBITDA of $227.7 million compared to a loss of $9.2 million in the same period last year.