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

Shares of Sea Limited Sponsored ADR (NYSE:SE) hit a new 52-week low during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company 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 (EPS) for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.28). The company had revenue of $6.85 billion for the quarter, compared to analyst estimates of $6.42 billion. SEA had a net margin of 6.93% and a return on equity of 16.35%. The company’s revenue for the quarter was up 38.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.39 EPS.

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

Key Stories Impacting SEA

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Strong top‑line and profitability beat on several metrics — Q4 revenue rose ~38% YoY to about $6.9B, gross profit and adjusted EBITDA grew >30% YoY, and full‑year net income was up materially, underscoring multi‑segment scale. Sea Limited Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Strong balance sheet and cash flexibility — several analysts and writeups note Sea’s multi‑billion dollar net‑cash position and positive free‑cash‑flow profile, which supports continued investment in Shopee, Garena and fintech expansion. Market Panic Created A Rare Strong Buy Opportunity
• Positive Sentiment: Major research house kept an outperform stance despite trimming its target — Sanford C. Bernstein cut its PT from $170 to $150 but maintained an Outperform rating, signaling conviction in the company’s long‑term opportunity even after the pullback. PT Lowered to $150 at Bernstein
• Neutral Sentiment: Earnings call transcript and management detail — the call provides nuance on cost cadence, competitive intensity in Southeast Asia, and where management will prioritize growth vs. margin. Active investors should review the transcript for color on guidance assumptions. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Options and volatility picking up — flow showed heavy activity after the print, amplifying intraday moves and signaling trader interest in hedges or directional bets. This can widen intraday bid/ask spreads and accelerate price swings. Options Traders Target Sea Stock
• Negative Sentiment: EPS missed consensus — the reported EPS came in below analyst expectations, which triggered the initial sell‑off despite the revenue beat; markets focused on the bottom‑line surprise. Q4 Earnings Miss
• Negative Sentiment: Margin and cost concerns plus softer Shopee outlook — management signaled higher near‑term investment and a slower GMV trajectory for Shopee than some investors hoped, pressuring margins and future EPS growth expectations. Softer Shopee Outlook
• Negative Sentiment: Market reaction: sharp sell‑off on the EPS miss and margin/guidance concerns spurred headlines and momentum selling, creating a volatile near‑term environment. Several outlets flagged the tumble and debated whether the move was overdone. Why Sea Limited Plunged

Wall Street Analyst Weigh In

SE has been the subject of several recent analyst reports. Wedbush decreased their target price on shares of SEA from $190.00 to $170.00 and set an “outperform” rating for the company in a research report on Friday, December 19th. Weiss Ratings reiterated a “hold (c-)” rating on shares of SEA in a research report on Monday, December 29th. Phillip Securities upgraded SEA from a “hold” rating to a “strong-buy” rating in a research report on Sunday, November 16th. Sanford C. Bernstein reduced their price target on SEA from $170.00 to $150.00 and set an “outperform” rating for the company in a research report on Wednesday. Finally, Zacks Research cut SEA from a “hold” rating to a “strong sell” rating in a research note on Wednesday, December 10th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $186.61.

Hedge Funds Weigh In On SEA

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

SEA Price Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.42 and a current ratio of 1.44. The company’s 50 day moving average price is $118.58 and its 200-day moving average price is $146.88. The company has a market cap of $52.12 billion, a price-to-earnings ratio of 35.11 and a beta of 1.59.

SEA Company Profile

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.