Sea Limited (NYSE:SE) is one of the best stocks to buy for the next 5 years. On November 18, Bank of America Securities analyst Sachin Salgaonkar maintained a Buy rating on Sea Limited and set a price target of $200.
Earlier on November 17, Phillip Securities upgraded Sea Limited to Buy from Neutral with an unchanged price target of $170. This sentiment followed the company’s Q3 2025 earnings report. Citing a favorable entry point following the stock’s recent pullback, Phillip Securities has upgraded Sea Limited and increased revenue estimates for FY25 and FY26. The upgrade is supported by broad-based growth, specifically noting Shopee’s continued market strength and a resurgence in the Garena gaming segment, which just saw its best results since 2021.
In its Q3 2025 earnings report, Sea Limited announced delivering record total revenue of $6 billion, which was a 38% year-over-year increase. The company’s adjusted EBITDA grew 68% to $874 million, while net income more than doubled from $153 million in the previous year to $375 million. These results were fueled by robust monetization in e-commerce and high engagement in digital entertainment, leading to a diluted EPS of $0.59.
Shopee, the company’s e-commerce segment, achieved a record GMV of $32.2 billion and a gross order volume of $3.6 billion, both representing 28% year-over-year growth. Monetization was a key driver, as ad revenue surged over 70% and the ad take rate rose by more than 80 basis points. To improve operational efficiency, the company’s logistics arm, SPX Express, now fulfills more than half of all Shopee orders, contributing to a 2-day improvement in average delivery speeds in Brazil. Additionally, the Shopee VIP membership program grew to over 3.5 million members, a 75% increase quarter-on-quarter, with members spending approximately 40% more after joining.
Sea Limited (NYSE:SE), through its subsidiaries, operates as a consumer internet company in Southeast Asia, Latin America, the rest of Asia, and internationally. The company operates through E-commerce, Digital financial services, and Digital entertainment segments.
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Disclosure: None. This article is originally published at Insider Monkey.
