Why Sea Ltd (SE) Stock is a Compelling Investment Case
“Sea Ltd also experienced a similar dynamic of both rapid revenue growth and expanding multiples. But how it achieved this was a bit different.
When we invested in late 2018, I could see that Garena (the gaming business) was a phenomenal business, but I had trouble underwriting the newly self-developed (and less than a year old at the time) game Free Fire 9 . Additionally, Garena was providing all the cash flow for Sea Ltd to invest in its Shopee e-commerce platform.
If Garena stumbled (which …