SE Stock Rises Overnight: Retail Shrugs Off Shopee Owner Sea’s EPS Miss — ‘Short-Term Pain For Long-Term Gain’

• Sea reported 43.4% revenue growth to $8.6 billion in Q3, while net income rose 34%. 
• Shopee revenue increased 41.3% to $6.1 billion, supported by higher orders and GMV. 
• On Stocktwits, retail sentiment around SE stock jumped to ‘extremely bullish’ from ‘neutral’. 

Sea (SE) stock gained overnight as retail investors appeared willing to look past the e-commerce giant’s third-quarter (Q3) earnings miss, focusing instead on 43.4% revenue growth, improving profits across Shopee, Monee and Garena, and a fresh $1 billion buyback authorization. 

Sea stock traded 1.4% higher overnight, ahead of Wednesday, after a 1% drop in regular session. 

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Sea Delivers Strong Revenue Growth Despite EPS Miss

In  Q3, Sea generated $8.6 billion in revenue, a 43.4% year-on-year jump. Gross profit climbed 51.4% to $3.9 billion, while net income rose 34% to $502.5 million. Adjusted EBITDA increased 28.9% to $931.3 million. However, earnings per share of $0.78 came in below Wall Street's $0.97 expectation, according to Fiscal.ai.  

Sea’s e-commerce business, Shopee, continued to drive growth. The platform handled 4.5 billion orders during Q3, a 25.5% surge from last year. The total value of goods sold rose 23.3% to $39.7 billion, while Shopee’s revenue shot up 41.3% to $6.1 billion. 

Sea’s Financial Services And Gaming Maintain Momentum

Sea’s digital financial services business, Monee, reported a 63.9% jump in revenue to $1.6 billion. Its total outstanding loans to consumers and small businesses grew 60% from a year earlier to $12.6 billion. However, the share of loans overdue by more than 90 days rose to 1.3% from 1.1% last year. 

Sea’s gaming business, Garena, reported a 28.6% increase in revenue to $840.1 million, while adjusted EBITDA rose 45.9% to $458.2 million. The number of active users remained largely unchanged at 671.7 million, while paying users grew 4.1% to 68.6 million.  On Nov. 9, the company's board authorized an additional $1 billion share buyback plan without an expiration date.

Sea CEO Reaffirms 2026 Growth Targets

During the Q3 earnings call, CEO Forrest Li maintained confidence, reaffirming Sea’s target of target 25% GMV growth and $1 billion in adjusted EBITDA for 2026.

Li also discussed Sea Cloud, the company's computing infrastructure initiative. “We are setting up Sea Cloud as a frugal start-up so that it can stay nimble and respond quickly to market demand. Our focus is the software and customer relationships, not owning large amounts of physical capacity. Where customers need dedicated computing capacity, we will only pursue opportunities with clear customer commitments and attractive returns,” said Li. 

What Are SE Retail Traders Saying 

On Stocktwits, retail sentiment around the stock turned ‘extremely bullish’ from ‘neutral’. 

A user said,” The earnings were great besides the EPS. Short-term pain for long term gain in my opinion.    I think the stock price is ready to start moving up throughout quarter.  Dalio and Drukenmiller own this too and are 2 of the best investors out there.”

Another user said, “Results keep going up and to the right... ~40% YOY GMV Shopee growth, YOY ~60% Monee growth, but some say dead money? Lol. On what basis? Technicals have certainly sucked but will eventually catch up to results.”

A third user said, “THIS S**** GONNA BE $APP 2.0 GET THE F*** IN BEFORE WE RUN.”

SE stock has crashed 39% year-to-date. 

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