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Is Sea Limited Stock a Buy Going Into 2022?

By Neil Rozenbaum – Dec 22, 2021 at 7:00AM

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The stock has gone down 40% in recent weeks.

In this video, I will be talking about Sea Limited (SE 1.04%) and whether it is a buy going into 2022. You can find the video below, but here are some highlights. 

  • Sea Limited's stock has gone down 40% in recent weeks and is now trading at 11 times trailing-12-months (TTM) revenue while having grown revenue over 100%.
  • The company raised guidance for the second time for e-commerce for the full year of 2021. The company expects GAAP revenue for e-commerce to be between $5.0 billion and $5.2 billion, representing 135.3% growth year over year at the midpoint of the revised guidance, compared to the previous guidance of between $4.7 billion and $4.9 billion.
  • During Shopee's 12.12 Birthday Sale event, users claimed 850 million vouchers, nine in 10 users made a purchase from local sellers, there were 14 times more orders recorded on Shopee Mall than an average day, and one in 8 users was a first-time Shopee Mall shopper.
  • Shopee leads the top 10 shopping apps in Brazil. 
  • As I talked about in my other Sea Limited video, the company is not just a video game company. Shopee, the e-commerce side, dominates Southeast Asia, and it has been making great moves in Latin America and, more recently, Europe. 
  • Obviously, it also has a fintech side, which is still very small, called SeaMoney. The mix of all three business segments together make this a very appealing company to hold in your long-term portfolio.

For the full insights, do watch the video below, and consider subscribing. 

*Stock prices used were the closing prices of Dec. 20, 2021. The video was published on Dec. 21, 2021.

Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool owns 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.

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