Sea Limited’s Stock Navigates Turbulent Waters Amid Strong Fundamentals

Despite posting robust third-quarter results for 2025 and raising guidance for its core Shopee business, Sea Limited's shares have faced significant selling pressure, trading near their annual lows. The market's cautious stance persists even as the company aggressively invests in AI monetization, with investors now looking ahead to the full-year 2025 report expected in March 2026.

The Singapore-based tech group's latest earnings demonstrated strength across its diverse portfolio. Revenue surged 38% year-over-year to US$6 billion, surpassing market forecasts. Profitability metrics were even more impressive, with adjusted EBITDA jumping 68% to reach US$874 million.

This performance was fueled by substantial growth in all three core segments:
* E-Commerce (Shopee): Gross merchandise volume (GMV) expanded by 28% to US$32.2 billion, supported by a more than 70% increase in advertising revenue.
* Digital Financial Services (SeaMoney): The credit portfolio grew 70% to US$7.9 billion, while non-performing loan ratios remained stable.
* Digital Entertainment (Garena): This segment staged a notable recovery, reporting a 51% rise in bookings and a substantially higher EBITDA.

Strategic Levers: Shareholder Returns and AI Integration

In a move to enhance shareholder value, Sea's board authorized a US$1 billion share repurchase program in November 2025. Concurrently, the company is pursuing technological innovation as a key growth driver. A strategic collaboration with OpenAI, effective since January 2026, aims to integrate AI-powered features like "ChatGPT Go" for Shopee users across Southeast Asia.

Should investors sell immediately? Or is it worth buying Sea?

Management is also sharpening its focus on profitability, particularly in international markets. Recent adjustments to seller commission rates in Brazil are viewed by observers as a strategic step toward a more sustainable and profitable growth trajectory for the region. The integration of artificial intelligence is poised to be a critical factor in catalyzing the company's next growth phase.

Market Performance and Forthcoming Catalysts

The stock's recent performance stands in stark contrast to its solid operational results. Shares recently closed at €92.00, hovering just above the 52-week low of €90.00 and having shed approximately 23% of their value in the past month alone. The significant gap below the 200-day moving average underscores the prevailing bearish trend.

Market participants anticipate that the upcoming fourth-quarter and full-year 2025 earnings release will provide clearer direction on the company's fundamental path forward. Sea Limited is scheduled to publish its annual report in early March 2026, with the window between March 3 and March 10 cited as the most likely timeframe.