We came across a bullish thesis on Sea Limited on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on SE. Sea Limited’s share was trading at $135.28 as of December 1st. SE’s trailing and forward P/E were 60.70 and 35.46 respectively according to Yahoo Finance.
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Sea Limited (SE) delivered a transformative Q2 2025 performance, reporting a 418% increase in earnings to $414.2 million on 38% revenue growth to $5.3 billion, driven by its e-commerce, fintech, and gaming businesses. The results demonstrate that the company’s competitive moat is not in any individual segment but in the multiplicative integration of Shopee × Monee × Garena, creating what can be described as an “Ecosystem Fortress.”
Monee’s consumer and SME loan book grew 94% YoY to $6.9 billion while maintaining an NPL90+ ratio of just 1.0%, leveraging Shopee’s behavioral data to underwrite with precision unmatched by traditional lenders. This data-driven advantage allows Sea to expand rapidly without sacrificing credit quality, effectively operating in a space competitors cannot replicate.
Shopee’s slight margin compression reflects deliberate reinvestment from a position of strength, funding user experience, logistics improvements, VIP programs, and market consolidation strategies that cash-constrained competitors cannot match. Meanwhile, Garena has re-accelerated, with mid-year guidance expecting 30%+ bookings growth in 2025, transforming it into a high-margin, self-funding engine that reduces overall execution risk across the ecosystem.
The Q2 results highlight that Sea is more than the sum of its parts; its true value derives from the compounded benefits of its integrated platform. Each segment reinforces the others: Shopee fuels Monee’s underwriting, Monee reduces friction for Shopee, and Garena provides cash flow to support both.
This multiplicative synergy positions Sea to scale profitably while strengthening its economic moat. Investors now face the opportunity to recognize and capture the value of a fully operational Ecosystem Fortress that combines high growth, strategic reinvestment, and self-sustaining cash generation, offering a rare, durable competitive advantage.
Previously we covered a bullish thesis on Sea Limited (SE) by Global Equity Briefing in May 2025, which highlighted the company’s integrated ecosystem of Shopee, Garena, and Monee, strong operational scale, and cost efficiencies driving revenue growth. The company’s stock price has depreciated by 17.54% since our coverage. The thesis still stands as SE’s ecosystem remains a durable competitive advantage. Nikhs shares a similar view but emphasizes the multiplicative synergy across segments.
