In this video, I will discuss Sea Limited's (SE) recent quarter and whether now is a good time to open a position with the stock being down 65% year to date and the business still growing fast.

  • Garena is still experiencing headwinds from the reopening, but management said that it is seeing some stabilization from the slowdown and loss of active and paying users. 
  • Shopee and Sea Money are still growing extremely fast but are also still unprofitable. This is why Garena's profitability is extremely important. 
  • Total gross profits in Q1 grew 81% year over year to $1.2 billion. 
  • Net loss increased to $580.1 million from $422.1 million in the prior-year quarter. 
  • Full-year GAAP revenue guidance for e-commerce is now expected to grow 71.8% at the midpoint, which is lower than the 75.7% previously guided for. 

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*Stock prices used were the closing prices of May 16, 2022. The video was published on May 17, 2022.