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3 Reasons Why Sea Limited's Earnings Made Me More Bullish on the Company

By Jose Najarro - May 19, 2021 at 7:00AM

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Sea Limited continues to show strong growth across all of its markets. Is this the growth stock to buy now?

In today's video, I look at Sea Limited (SE 1.49%) as the company just reported its earnings for Q1 2021. Below I share three reasons why I, a long-term investor, continue to be bullish on Sea Limited.

Three reasons I am more bullish on Sea Limited

  1. Sea Limited reported a 147% year-over-year (YOY) total revenue growth for the first quarter of 2021. The increase was driven by its digital entertainment segment that grew 117% YOY in bookings and its e-commerce segment that grew 250% YOY in revenue.
  2. Sea Limited saw year-over-year and quarter-over-quarter growth in quarterly active users and quarterly paying users for its digital entertainment segment. Sea Limited also saw similar style growth for its gross orders and gross merchandise value for its e-commerce segment.
  3. The company reported total adjusted EBITDA profits of $88.1 million, compared to $48.7 million a quarter ago and a loss of $69.9 million a year ago.

Click the video below for my full thoughts. 

*Stock prices used were the midday prices of May 18, 2021. The video was published on May 18, 2021. 

Jose Najarro owns shares of Sea Limited. The Motley Fool owns shares of and recommends Sea Limited. The Motley Fool has a disclosure policy.

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