Sea Limited Q4 2024 Earnings: Is SE Stock a Buy Now?

Sea Limited (NYSE: SE) is one of those companies that seems to have a hand in everything—gaming, e-commerce, and digital payments. If you’ve been following Southeast Asian tech stocks, you probably already know about its flagship brands: Garena, Shopee, and SeaMoney. But how’s the company holding up after its latest earnings report? And is SE stock a buy right now? Let’s break it all down.

Background of Sea Limited

Founded in 2009 and headquartered in Singapore, Sea Limited started as a gaming company with its digital entertainment arm, Garena. It quickly expanded into e-commerce with Shopee, which has become a dominant force in Southeast Asia’s online shopping space. Then, it jumped into fintech with SeaMoney, a digital payments and financial services platform.

In short, Sea is like a mix of Tencent (because of Garena), Alibaba (because of Shopee), and PayPal (because of SeaMoney). The company went public in 2017, and at one point, it was one of the hottest tech stocks in the world, riding the e-commerce boom. However, rising competition, a cooling gaming market, and the struggle to reach sustained profitability have created some turbulence for SE in recent years.

Recent Earnings Report: Q4 2024

Sea Limited released its latest earnings on January 24, 2025, and the numbers were a bit of a mixed bag. Here’s what stood out:

• Total revenue came in at $3.85 billion, up 9% year-over-year, but slightly below analyst expectations.
• E-commerce (Shopee) revenue grew 14% YoY to $2.35 billion, but operating expenses also increased.
• Digital entertainment (Garena) revenue was $890 million, down 5% YoY, as Free Fire—its biggest game—continues to face slowing user growth.
• Fintech (SeaMoney) revenue surged 30% YoY to $610 million, showing strong demand for digital payments and lending services.
• Adjusted EBITDA was $155 million, marking the second straight profitable quarter, but a drop from Q3’s $276 million.
• Net loss came in at $65 million, a big improvement from the $492 million loss in the same period last year.

The biggest takeaway? Shopee and SeaMoney are still growing, but Garena’s decline is a concern. Plus, profitability remains fragile as the company ramps up spending again to maintain market share.

How Is SE Stock Performing?

Sea Limited’s stock has been on a rollercoaster over the past few years. After skyrocketing during the pandemic, it crashed in 2022 as tech stocks tumbled and profitability concerns took center stage.

As of January 31, 2025, SE stock is trading at $123.38, up 7% since the earnings report. Over the past year, it has fluctuated between $38.10 and $125.69. With a market cap of $70 billion, Sea is no longer the high-flying $200 billion company it once was, but it still has a lot of potential if it can sustain growth and improve margins.

Is Sea Limited Stock a Good Value?

At first glance, SE stock seems cheap compared to its pandemic highs. But is it actually a bargain?

• Price-to-sales (P/S) ratio: ~1.8, which is reasonable for a growing e-commerce and fintech company.
• Earnings projections: Analysts expect Sea to break even in 2025 and generate consistent profits from 2026 onward.
• Competition: Shopee is battling giants like Lazada (Alibaba) and TikTok Shop, while SeaMoney faces strong rivals in digital finance.

The bottom line? Sea is in better shape than it was a year ago, but it’s still in a rebuilding phase. Its valuation isn’t outrageous, but the company needs to prove it can sustain profitability without sacrificing growth.

Key Recent Developments

There have been some important moves by Sea in recent months:

• Shopee Expanding Logistics: The company has been investing heavily in logistics to reduce reliance on third-party providers and improve margins.
• Garena Looking for a Comeback: While Free Fire remains its biggest game, Garena is reportedly working on new titles and partnerships to revitalize its gaming division.
• SeaMoney’s Growth: The fintech arm is expanding lending services, particularly in Indonesia and Brazil, which could be a major revenue driver in 2025 and beyond.
• Cost Discipline: After aggressively cutting costs last year, Sea is cautiously reinvesting in marketing and expansion, though it remains committed to profitability.

Analyst Opinions and Price Targets

Wall Street is split on Sea Limited. Some analysts see some upside potential, while others worry about execution risks.

• The average 12-month price target is $129.62, suggesting just a 5% upside from current levels.
• Bullish case: If Shopee keeps growing, Garena stabilizes, and SeaMoney expands profitably, SE stock could head back toward $157.
• Bearish case: If competition eats into Shopee’s market share and Garena continues to decline, SE could drop toward $100 again.

Future Outlook: What’s Next for Sea Limited?

Looking ahead, here’s what investors should watch:

1. Shopee’s Profitability: Can Sea keep growing e-commerce revenue without overspending on promotions and discounts?
2. Garena’s Performance: If Free Fire continues to decline, the gaming segment could become a drag on overall growth.
3. SeaMoney’s Expansion: Digital finance is a huge opportunity, but can Sea turn it into a major profit driver?

Should You Buy or Sell SE Stock?

So, is Sea Limited stock worth buying right now? It depends on your risk tolerance.

• If you’re bullish on Southeast Asia’s e-commerce and fintech boom, SE could be a strong long-term investment at current levels.
• If you’re worried about competition, profitability, and Garena’s decline, it might be better to wait for more clarity before jumping in.

Sea Limited has come a long way, but it’s still in the middle of a transition. Shopee and SeaMoney are growing, but Garena’s struggles and profitability concerns continue to weigh on the stock. If the company can execute well in 2025, SE stock could be a solid comeback story. But for now, investors should approach with cautious optimism.