Singapore-based Sea Ltd ( SE ) fell this morning after the shopkeeper reported better-than-expected earnings but missed earnings estimates for Q4, indicating it is spending more than expected to sustain growth.
However, the post-earnings selloff pushed the SE Relative Strength Index (14-day) down to just 27, a technical setup that often precedes a support rally.
Long-term investors should also consider loading up on Ocean stock because, down about 40% from its year-to-date high, it’s no longer an expensive name to own in 2026.
While it seems that investors are completely focused on the memory of earnings, the release of the ocean actually indicates a “powerhouse” that is operating at high speed.
Shopee witnessed an explosive 70% increase in advertising revenue, proving that SE is successfully transitioning from a subsidized growth model to a high-margin advertising machine.
Meanwhile, the company’s fintech arm, Muni, saw its loan book nearly double to $9.2 billion in Q4 while significantly holding its non-performing loans (NPL) steady at just 1.1%.
With management guidance for Garena’s gross merchandise value (GMV) to grow 25% this year, the post-earnings sell-off in SE stock undermines how quickly the NYSE-listed company can capture dominant, profitable market share in a digital economy that is still in its infancy.
Jefferies also recommends owning Marine shares as the company’s Q4 print confirms that it is getting better at monetizing its existing user base.
“green”free fireLeverages new IP collaborations, which the investment firm believes will help boost segment (game) cash flow.
Moreover, its analysts believe that Shopee’s dominance, as evidenced in the 28.6% GMV growth in the fourth quarter, will continue till the rest of 2026.
While rising logistics costs and broader sentiment around the high-growth tech stock led Jefferies to cut its estimates on March 3, the revised $150 lower price target still signals a potential upside of nearly 70% from here.
Other Wall Street analysts are also bullish on SE shares while ruling them below their major moving averages (MAs) at the time of writing.
