$SE (+1,87%) presented its figures for Q4 2025 yesterday. Despite a massive jump in sales, the share price fell by double digits today. Is it worth entering the dip or are we just seeing the end of the hype?
The hard facts:
✅ Positives:
- Growth engine: Sales increased by a strong 36% to $23 billion in 2025.
- Profitability: Net profit exploded to $1.6 billion (up from $448 million the previous year).
- FinTech star: SeaMoney growing rapidly (+60% revenue) and delivering over $1bn EBITDA.
- Garena revival: Free Fire is back - Bookings grew by 37%.
❌ Negative:
- Earnings Miss: Earnings per share (EPS) of $0.63 was well below expectations ($0.80).
- Margin pressure: Shopee is investing heavily in logistics and marketing to fend off TikTok Shop and Temu. This is putting pressure on profitability.
- Outlook: GMV growth of "only" 25% is expected for Shopee in 2026 - the market had hoped for more.
The crucial question:
At a share price of ~$88 (P/E of ~2.2), is Sea Limited a bargain for the long-term rise of Southeast Asia, or will rivals TikTok and Temu eat into future profits?
