Rating of the company Sea Limited(NYSE: SE) it is a triple threat in the digital economy. The Singapore-based company operates the largest e-commerce platform in Southeast Asia, a thriving digital financial services business, and a game development studio responsible for some of the world’s most successful mobile titles.
Marine stocks have fallen 34% this year amid rising oil prices, raising concerns about a possible slowdown in consumer spending, but this could be a good long-term buying opportunity. In fact, most analysts are tracked by The Wall Street Journal gave the stock a buy rating, and no one recommends selling.
Will AI create the world’s first trillionaire? Our team recently released a report on one little-known company, called “Indispensable Monopoly” that provides essential technology needed by both Nvidia and Intel. Continue »
The group’s best-performing analyst predicts the stock could rise 124% from here. I think that’s true, which is why I bought Ocean stock myself in March.
Image source: Getty Images.
Three amazing growth stories under one roof
Shopee is Sea Limited’s hybrid e-commerce platform for consumer-to-consumer and business-to-consumer e-commerce. It serves many Southeast Asian countries, including Singapore, Indonesia, and Malaysia, and is expanding into Latin America, with a rapidly growing presence in Brazil. Shopee processed more than 37 billion orders in the first quarter of 2026 (ended March 31), up 30% from the year-ago period.
Then there’s Monee, which is Sea’s digital financial services platform. It lends money to Shopee merchants to help them grow their businesses, and provides buy-now, pay-later loans to consumers to increase their spending power. Monee had a record $9.9 billion in loans on its books at the end of the first quarter, a 71% year-over-year increase. Brazilian borrowers accounted for $1 billion of those loans, up 250%.
The third part of the ocean’s business is digital entertainment, led by the Garena game development studio. Garena’s most successful mobile game Free firewhich has been downloaded about 2 billion times worldwide, but it also owns other blockbuster titles such as Call of Duty: Mobile again EA Sports FC.
The studio had 666.5 million users across all titles in the first quarter, which was up modestly from the same quarter last year. But the percentage of users who made in-game purchases came in at 10.9%, the best result in five years.
Accelerating revenue growth
Sea Limited generated $7.1 billion in net income in the first quarter, which represented a year-over-year growth rate of 46.6%. It marked an acceleration from the company’s revenue growth of 36.4% for the full year 2025, and all three business units contributed to the strong result.
Part
Q1 2026 Revenue
Growth (YOY)
IE-commerce (Shopee)
$5.1 billion
45.1%
Digital financial services (Money)
$1.2 billion
57.8%
Digital entertainment (Garena)
$696.6 million
40.6%
Data source: Sea Limited. YOY = Year by year.
Ocean also had a good quarter last year, bringing in $1 billion in adjusted non-GAAP (generally accepted accounting principles) earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first time. Although Shopee accounts for the majority of the company’s revenue, it contributed only $223.2 million to adjusted EBITDA due to its narrow margins. The platform aims to offer buyers the lowest prices possible, which is not a recipe for huge profits.
Ocean’s biggest contributor to adjusted EBITDA was Garena, which generated $573.6 million despite its relatively small capital base. This is one of the advantages of a very unique offshore business.
I agree with Wall Street’s consensus on Ocean stock
The Wall Street Journal tracks 30 analysts who cover Ocean’s stock, and 23 have given it a buy rating. Another two are in the bullish camp, while the remaining five recommend holding. The beach did not attract sell ratings from this group of analysts.
Analysts have an average target price of $141.55, suggesting that Ocean’s stock could rise 63% over the next 12 months or so. However, the Street-high target of $195 implies a potential upside of 124%.
I think both goals are achievable based on Sea’s attractive calculations. Its stock trades at a price-to-sales (P/S) ratio of just 2.1, well below its three-year average of 3.3. In addition, Wall Street expects the company’s annual revenue to grow to $29.8 billion in 2026 and $36.2 billion in 2027 (according to Yahoo! Finance), giving its stock a forward P/S ratio of 1.78 and 1.47, respectively.
Data via YCharts.
That means the marine stock would have to rise 124% by the end of 2027 just to trade in line with its three-year P/S ratio of 3.3. And if the company’s revenue growth continues at pace, I think its valuation could rise even further.
But another reason why I love the Sea is the balance sheet. At the end of the first quarter, the company had $11.1 billion in cash, cash equivalents, and short-term investments, with less than $800 million in debt. That gives managers an incredible amount of flexibility to invest aggressively in growth, which can be very powerful for shareholders in the long term.
Should you buy stock in Sea Limited right now?
Before buying stock in Sea Limited, consider the following:
I The Motley Fool Stock Advisor a team of analysts has just identified what they believe to be 10 best stocks for investors to buy now… and Sea Limited was not one of them. The 10 stocks that made the cut could produce huge gains in the coming years.
Think about when Netflix made this list on December 17, 2004… if you invested $1,000 during our recommendation, you will have $477,813!* Whenever Nvidia made this list on April 15, 2005… if you invested $1,000 during our recommendation, you will have $1,320,088!*
Now, it’s worth noting Stock Advisor’s the average total return is 986% – out-performing the market compared to 208% of the S&P 500. Don’t miss the latest top 10 list, available via Stock Advisorand join an investment community built by individual investors for individual investors.
See 10 stocks »
*Stock Advisor returns as of May 23, 2026.
Anthony Di Pizio holds positions in Sea Limited. The Motley Fool has a position on and recommends Sea Limited. The Motley Fool has a policy of disclosure.
The 1 Amazing Growth Stock You Can Buy Before It Rises 124%, According to Wall Street was originally published by The Motley Fool.
