SEA (NYSE:SE) Shares Gap Up - Should You Buy?

Key Points

• SEA shares surged 14.2%, opening at $127.87 after closing at $114.80, as investors reacted positively to second-quarter revenue of $7.8 billion, up 48.1% year over year.
• Despite the strong revenue growth, quarterly EPS of $0.70 missed the $0.86 consensus estimate, while rising investment and credit provisions could pressure near-term margins.
• Analysts remain broadly constructive, with a consensus “Moderate Buy” rating and a $154.81 price target, though insider share sales and SEA’s elevated valuation add caution for prospective investors.

Sea Limited Sponsored ADR (NYSE:SE - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $114.80, but opened at $127.87. SEA shares last traded at $128.3110, with a volume of 4,250,292 shares.

More SEA News

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Revenue significantly beat expectations: Second-quarter GAAP revenue reached $7.8 billion, up 48.1% year over year. Gross profit rose 47.3% to $3.5 billion, while net income increased 10.6% to $458.1 million and adjusted EBITDA climbed 10.6% to $917.2 million. Sea Limited Reports Second Quarter 2026 Results
• Positive Sentiment: Strong revenue growth outweighed the profit shortfall: Sea reported quarterly EPS of $0.70, below the $0.86 consensus estimate, but revenue exceeded expectations. The favorable market reaction suggests investors are prioritizing the company’s accelerating top-line growth and operating momentum. Sea Limited misses EPS but revenue beat pushes shares higher
• Positive Sentiment: OpenAI partnership may strengthen Shopee: Sea’s artificial-intelligence initiatives could improve product discovery, seller tools and automation, potentially supporting customer engagement and efficiency over time. Sea's AI Push With OpenAI Could Deepen Shopee's Competitive Edge Now
• Neutral Sentiment: Analysts note that growth is broad-based across e-commerce, fintech and gaming, but Sea’s recent rally has lifted valuation while increased investment and credit provisions may limit near-term upside. Is Sea Stock a Buy Now as Growth Accelerates but Margins Tighten?
• Negative Sentiment: EPS missed expectations: Reported earnings of $0.70 per share were $0.16 below consensus, highlighting pressure on profitability despite sharply higher revenue.
• Negative Sentiment: Insiders sold shares: COO Gang Ye sold 40,000 shares across two transactions, while Yanjun Wang sold 3,000 shares. The sales were disclosed in SEC filings and modestly reduced their holdings, potentially adding a cautionary signal for investors.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Sanford C. Bernstein reissued an "outperform" rating on shares of SEA in a research report on Monday, July 20th. Zacks Research upgraded shares of SEA from a "strong sell" rating to a "hold" rating in a research report on Monday, June 1st. JPMorgan Chase & Co. lowered their price objective on shares of SEA from $168.00 to $163.00 and set an "overweight" rating for the company in a research note on Thursday, May 14th. TD Cowen dropped their target price on shares of SEA from $108.00 to $100.00 and set a "hold" rating for the company in a report on Tuesday, August 4th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of SEA in a research note on Tuesday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $154.81.

SEA Stock Up 14.2%

The company's fifty day simple moving average is $99.67 and its 200 day simple moving average is $96.63. The company has a current ratio of 1.58, a quick ratio of 1.56 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $80.12 billion, a P/E ratio of 51.41, a price-to-earnings-growth ratio of 1.09 and a beta of 1.54.

SEA (NYSE:SE - Get Free Report) last announced its earnings results on Tuesday, August 11th. The Internet company based in Singapore reported $0.70 earnings per share for the quarter, missing analysts' consensus estimates of $0.86 by ($0.16). SEA had a net margin of 6.41% and a return on equity of 14.12%. During the same quarter in the prior year, the business posted $0.65 EPS. The company's revenue was up 48.3% on a year-over-year basis. Research analysts expect that Sea Limited Sponsored ADR will post 3.23 EPS for the current year.

Insider Activity

In other SEA news, insider Yanjun Wang sold 1,500 shares of SEA stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $114.58, for a total transaction of $171,870.00. Following the sale, the insider directly owned 10,000 shares of the company's stock, valued at approximately $1,145,800. The trade was a 13.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Gang Ye sold 20,000 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $114.59, for a total value of $2,291,800.00. Following the transaction, the chief operating officer owned 460,000 shares in the company, valued at $52,711,400. This trade represents a 4.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 541,100 shares of company stock valued at $54,277,980 over the last 90 days. 0.22% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SEA

A number of institutional investors have recently added to or reduced their stakes in SE. Venturi Wealth Management LLC lifted its position in SEA by 1.9% during 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. Cloud Capital Management LLC grew its position in shares of SEA by 8.0% in the 4th quarter. Cloud Capital Management LLC now owns 2,005 shares of the Internet company based in Singapore's stock worth $255,000 after buying an additional 148 shares during the period. SlateStone Wealth LLC increased its stake in shares of SEA by 0.5% in the 4th quarter. SlateStone Wealth LLC now owns 31,098 shares of the Internet company based in Singapore's stock worth $3,967,000 after acquiring an additional 150 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of SEA by 6.6% in the 2nd quarter. GAMMA Investing LLC now owns 2,730 shares of the Internet company based in Singapore's stock worth $262,000 after acquiring an additional 170 shares in the last quarter. Finally, Cornerstone Planning Group LLC increased its stake in shares of SEA by 26.5% in the 1st quarter. Cornerstone Planning Group LLC now owns 831 shares of the Internet company based in Singapore's stock worth $70,000 after acquiring an additional 174 shares in the last quarter. Institutional investors own 59.53% of the company's stock.

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.

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