We came across a rich article on GabGrowth’s Substack from C Ltd. In this article we will summarize Bill’s article on SE. C Ltd shares were trading at $88.26 as of March 4. SE’s trailing and forward P/E were 45.94 and 27.25, respectively, according to Yahoo Finance.
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Sea Limited, through its subsidiaries, operates as a consumer Internet company in Southeast Asia, Latin America, the rest of Asia, and internationally. SE is currently experiencing a 38% decline from its September 2025 high, raising concerns about Shopee, its core e-commerce business that drives 72% of revenue.
Despite the decline in operating profit over the past two quarters, this decline is not indicative of a repeat of the COVID-era shock. During the pandemic, Ocean benefited from artificially high demand and engagement, which normalized after 2023, requiring the company to move towards profitability through marketing cuts and operational optimization.
In contrast, the 2025 dip reflects deliberate reinvestment in logistics, fulfillment, sales promotion, and expansion in Brazil, marked by a strong unit economy and sustained profitability. Shopee’s competitive position is further strengthened against TechTekShop, which, although growing rapidly in Southeast Asia and doubling its GMV, still trails Shopee in terms of order and parcel volumes. Shopee’s advantages lie in purchases driven by search intent, which encourages repeat behavior; Ensuring proprietary logistics, operational control and cost stability through SPX Express; And the wide range of products caters to high-value categories, in contrast to TechTechShop’s content-led, incentive-focused platform.
Additionally, Shopee is strategically layering social commerce capabilities through partnerships with YouTube and Meta, to boost discovery without hurting its transactional bottom line. These structural advantages suggest that Shopee remains the default platform for everyday e-commerce in the region, and TechTechShop, while competing in the right vertical, is unlikely to displace it. Overall, the decline appears to be more about sentiment than fundamentals, with the company positioned to maintain growth and profitability, making the current stock price an attractive entry point for long-term investors.
Previously, we covered a Fast article Ocean Limited (SE) by Global Equity Briefing in May 2025, which highlighted Shopee’s scale advantages, SPX Express Logistics, cross-platform synergies with Garena and Muni, and strong revenue and net income growth. SE’s stock price is down nearly 46.2% as our coverage of slowing growth in digital entertainment and broader declines in Asian markets. GabGrowth shares a similar view but insists that recent margin declines reflect deliberate reinvestment, not a repeat of the COVID-era shocks.
