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Will Sea Limited Reach $1 Trillion Market Cap by 2030?

By Neil Rozenbaum – Updated Sep 13, 2021 at 11:04AM

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The company is firing on all cylinders and expanding aggressively worldwide.

In this video, I will be talking about the gigantic Singaporean company called Sea Limited (SE -0.70%). I will go over its three main segments, Garena, Shopee, and Sea Money, as well as its future expansion into Europe and a possible TikTok challenger app in the making. You can find the video below. 

World expansion

Sea, which is an acronym for Southeast Asia, has been expanding worldwide, most recently into Latin America. Shopee launched in Brazil in 2019. News recently broke that it is entering India with its e-commerce app Shopee, and Poland might be its first European country.

This weekend an article that first appeared in Chinese on Momentum Works's WeChat platform claimed that Shopee could potentially launch a short video app in Southeast Asia to directly challenge TikTok. Whether those rumors will turn out to be true remains to be seen. But news like this coming out just days after Sea Limited raised $6.3 billion could raise some eyebrows.

Accelerating growth

Sea Limited is firing on all cylinders. Total GAAP revenue was $2.3 billion in Q2, up 158.6% year over year. The digital entertainment segment, which includes the popular game Free Fire, has seen paying users growing faster than active users. Bookings were $1.2 billion, up 64.8% YOY. Free Fire also recently hit a billion downloads on the Google Play store.

The e-commerce side, which is Shopee, saw GAAP revenue of $1.2 billion, up 160.7% YOY. Gross orders totaled 1.4 billion, an increase of 127.4% YOY. And lastly, Sea Money. Quarterly paying users for the mobile wallet services increased to 32.7 million in Q2, more than doubled YOY. 

The company raised guidance for both digital entertainment and e-commerce for the full year of 2021. It now expects 44.4% YOY growth for its digital entertainment segment and 121.5% for the e-commerce one.

For full insights watch the video below. 

*Stock prices used were the closing prices of September 10, 2021. The video was published on September 12, 2021.

Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Sea Limited. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

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Sea Limited
$60.65 (-0.70%) $0.43

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