SEA (NYSE:SE) Sets New 1-Year Low Following Weak Earnings

Sea Limited Sponsored ADR (NYSE:SE) hit a new 52-week low during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $77.05 and last traded at $79.2210, with a volume of 10814542 shares traded. The stock had previously closed at $105.21.

The Internet company based in Singapore reported $0.63 earnings per share for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.28). The business had revenue of $6.85 billion during the quarter, compared to analysts’ expectations of $6.42 billion. SEA had a net margin of 6.80% and a return on equity of 15.19%. The company’s revenue for the quarter was up 38.4% compared to the same quarter last year. During the same period last year, the business posted $0.39 earnings per share.

SEA announced that its board has authorized a share repurchase program on Monday, November 17th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the Internet company based in Singapore to repurchase shares of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Key Stories Impacting SEA

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Quarterly operating performance showed robust growth — Q4 revenue rose ~38.4% year-over-year, gross profit and net income also increased substantially, and adjusted EBITDA climbed 33.2%, underscoring continued multi-segment scale. Business Wire: Q4 and Full Year 2025 Results
• Positive Sentiment: Analyses highlight ongoing revenue and net-income expansion across e-commerce, digital financial services and gaming, and argue the shares could look attractive after the pullback if investors focus on long-term multi‑segment scaling. Yahoo Finance: Multi-Segment Growth
• Neutral Sentiment: Commentary and transcripts are available for the earnings call — useful for investors who want management detail on margin drivers, cost cadence and competitive dynamics. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Some analysts and commentators frame the drop as an overreaction to margin noise, suggesting the sell-off could present a buying opportunity for longer‑term investors who accept higher near‑term spending. The Motley Fool: Why Sea Limited Plunged Today
• Neutral Sentiment: Comparisons to other emerging‑market e‑commerce names (e.g., MercadoLibre) note both companies were punished post‑earnings, but the drivers and risk profiles differ — useful context for relative valuation and positioning decisions. 247WallSt: MercadoLibre vs Sea
• Negative Sentiment: Earnings per share missed estimates — Sea reported $0.63 EPS versus consensus ~$0.91, which framed the print as a profit/margin disappointment despite the revenue beat. Yahoo Finance: Shares Tumble on Earnings Miss
• Negative Sentiment: Management signaled higher costs and intensified competition in Southeast Asia, and provided a slower annual GMV (gross merchandise value) growth outlook — these guidance/cost signals amplified investor concern about near‑term margins. MSN: High Costs, Slower GMV Growth
• Negative Sentiment: Options and derivative flows picked up, with traders targeting SE as the cost concerns drove volatility — elevated put activity and heavy volume can exacerbate downward price moves in the near term. Schaeffers Research: Options Traders Target SE

Analyst Upgrades and Downgrades

Several research firms recently commented on SE. Barclays lifted their price target on SEA from $214.00 to $226.00 and gave the stock an “overweight” rating in a research report on Thursday, November 13th. Wedbush dropped their target price on SEA from $190.00 to $170.00 and set an “outperform” rating for the company in a report on Friday, December 19th. Jefferies Financial Group restated a “buy” rating and set a $150.00 price target on shares of SEA in a report on Tuesday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of SEA in a research note on Monday, December 29th. Finally, TD Cowen cut their price objective on shares of SEA from $165.00 to $144.00 and set a “hold” rating on the stock in a research report on Monday, November 10th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $189.30.

Institutional Trading of SEA

Several institutional investors and hedge funds have recently made changes to their positions in the business. Venturi Wealth Management LLC grew its holdings in shares of SEA by 1.9% in the fourth quarter. Venturi Wealth Management LLC now owns 5,208 shares of the Internet company based in Singapore’s stock worth $664,000 after purchasing an additional 98 shares during the last quarter. Belpointe Asset Management LLC boosted its position in SEA by 1.8% in the 3rd quarter. Belpointe Asset Management LLC now owns 5,779 shares of the Internet company based in Singapore’s stock valued at $1,033,000 after buying an additional 103 shares during the period. Rothschild Investment LLC grew its stake in SEA by 114.0% in the 3rd quarter. Rothschild Investment LLC now owns 199 shares of the Internet company based in Singapore’s stock worth $36,000 after acquiring an additional 106 shares in the last quarter. GAMMA Investing LLC increased its position in shares of SEA by 4.8% during the third quarter. GAMMA Investing LLC now owns 3,112 shares of the Internet company based in Singapore’s stock worth $556,000 after acquiring an additional 142 shares during the period. Finally, Salomon & Ludwin LLC increased its position in shares of SEA by 2,860.0% during the third quarter. Salomon & Ludwin LLC now owns 148 shares of the Internet company based in Singapore’s stock worth $27,000 after acquiring an additional 143 shares during the period. 59.53% of the stock is currently owned by institutional investors.

SEA Stock Down 16.3%

The company has a quick ratio of 1.42, a current ratio of 1.44 and a debt-to-equity ratio of 0.03. The stock has a market cap of $51.88 billion, a P/E ratio of 38.62 and a beta of 1.59. The company’s 50 day moving average price is $119.34 and its two-hundred day moving average price is $147.29.

About SEA

Sea Limited (NYSE: SE) is a Singapore-based consumer internet company that operates a trio of interconnected businesses across digital entertainment, e-commerce and digital financial services. Founded in 2009 as Garena and later rebranded as Sea, the company is headquartered in Singapore and listed on the New York Stock Exchange. Sea positions itself as a technology platform focused on enabling online consumers, merchants and developers primarily across Southeast Asia and adjacent markets.

Sea’s digital entertainment arm, Garena, is a game developer and publisher that also organizes esports initiatives and operates online gaming platforms.