Should You Sea Limited Stock?

Parkev provides a comprehensive analysis of Sea Limited, emphasizing that the company has successfully scaled its revenue from a few hundred million in 2017 to over $27 billion today. Parkev highlights that all three business segments—gaming, lending, and e-commerce—are booming simultaneously. A significant point of interest for Parkev is the company's improving profitability; operating margins have hit a trailing 12-month high of 7.9%, suggesting that growth is leading to economies of scale rather than being bought at the expense of profits.

Parkev also examines the operational efficiencies Sea Limited is achieving. By utilizing artificial intelligence for lending decisions, the company has reduced costs and accelerated the approval process. Furthermore, Parkev notes the company's capital-light model for Shopee, which involves renting infrastructure to improve returns on invested capital. While Parkev acknowledges a major headwind in the form of rising oil prices in Southeast Asia increasing transport costs, Parkev believes the valuation remains attractive with a forward P/E ratio of 22.78.