Sea Limited Delivers Strong Growth; Fair Value Raised to $101

Sea Limited delivered a strong fiscal year, with sales rising 29% compared to 2023. The strength was particularly evident in Shopee, the e-commerce unit, where revenue increased 38%, orders 33%, and gross merchandise volume 28%. Financial services also performed well, with realized revenue up 35%. Garena, the online gaming division, reported flat sales, but bookings rose 19%, a strong forward indicator. Bookings represent the cash spent on in-game items and are recognized as revenue when used. Given these results, my previous modeling appeared too conservative. After adjusting for more accurate projections, the fair value estimate rises significantly to $101; however, with the stock still trading well above that, SE remains on the Watch List.

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