Find growing companies with diverse business models such as Sea Limited (NYSE: SE) is one of the smartest ways to generate oversized returns for your portfolio. That said, it is important to avoid companies that are too diverse, as this can lead to a lack of focus and advantage for a business. This is part of the special feature of Sea Limited, as it is a company with multiple business segments that complement each other well.
It stands out as an investment opportunity that strikes the perfect balance between a diverse business model and the potential for long-term market leadership through the company’s successful Shopee e-commerce platform, which is a dominant force in Southeast Asia. Along with Shopee, this company has several other high growth companies that investors should not overlook at this time.
Here are 3 compelling reasons why the Sea Limited stock is special and could be even more bullish:
A trio of high-growth companies
What if you could own stock in a company that excels in three of today’s most fascinating industries? This is exactly the case with Taiwan-based Sea Limited, and that’s part of what makes it an attractive growth stock. The company has developed an integrated platform which consists of digital entertainment, e-commerce and digital financial services. Many of the fastest growing stocks in the market are involved in these sectors, and the fact that Sea Limited provides exposure to all three sectors is certainly impressive.
The company’s Shopee platform is the leading e-commerce platform in Southeast Asia and Taiwan, and helps consumers enjoy online shopping conveniently and affordably. Garena is Sea Limited’s online game developer and publisher who has already developed big hits like Free Fire, the world’s most downloaded mobile game in 2019 and 2020. Garena is also a leading esports organizer, which is a booming industry with enormous potential. Finally, the company’s SeaMoney service is one of the leading providers of financial services and digital payments in Southeast Asia. SeaMoney includes mobile wallet services, payment processing, credit, etc., and perfectly complements the company’s e-commerce activities.
Exposure to attractive emerging markets
Investing in emerging markets comes with its fair share of risk, but investors are also compensated for this risk in different ways. For example, stocks like Sea Limited are unique because they provide an opportunity to diversify your holdings and take advantage of regions of the world that have immense growth potential. Specifically, investors will have exposure to Southeast Asia, Taiwan, Indonesia and even Latin America, all of which are parts of the world that are increasingly fascinated by digital entertainment and shopping. in line.
It is important to note that Sea Limited has very limited operational exposure to China which is another huge advantage to consider given all the regulatory issues that are going on in that country at the moment. Finally, the fact that this company is trying to capture market share from Latin America’s largest e-commerce provider, MercadoLibre, by expanding into Brazil, is another intriguing reason to consider adding shares. The e-commerce industry hasn’t quite taken control of Latin America yet, which means there is plenty of room for a company like Sea Limited to develop a strong presence in Brazil. The bottom line is that if you are looking for one of the best emerging market stocks, Sea Limited is a good option to consider.
Amazing profit growth
While it’s easy to recognize the potential of Sea Limited’s multi-faceted business model, the fact that the company is showing amazing earnings growth quarter over quarter really makes it a special investment opportunity. The company had a very strong fiscal year 2020, with total GAAP revenue of $ 4.4 billion, up 101.1% year-over-year, and total gross profit of $ 1.00 $ 3 billion, up 123% year-over-year. Sea Limited is also off to a good start to fiscal 2021, with the company posting total first quarter GAAP revenue of $ 1.8 billion, up 146.7% year-on-year. ‘other.
Keep in mind that each of this business’s activities is benefiting from the favorable winds of the pandemic, as more people shop online, play video games, and use digital payment services than ever before. The company will release its second quarter results on August 17 before the bell, and it certainly wouldn’t be surprising to see another quarter of impressive results from the company.
Should you invest $ 1,000 in SEA now?
Before you consider SEA, you’ll want to hear this.
MarketBeat tracks Wall Street’s top-rated and top-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts quietly whisper to their clients to buy now before the broader market takes hold … and SEA was not on the list.
While SEA currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better bets.
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