Sea (SE) stock surged higher today after the tech conglomerate posted its Q4 2024 earnings results. This rally was fueled by the company’s $4.95 billion in revenue, which smashed Wall Street’s $4.65 billion estimate for the quarter. It was also a massive 36.7% increase year-over-year from $3.62 billion. This was the result of strong e-commerce growth during the period.
One negative in the Sea report was diluted earnings per share of 39 cents. While this missed analysts’ estimate of 71 cents, it was a major improvement over the company’s diluted EPS of -19 cents reported in Q4 2023. Yet again, the company attributed this to powerful e-commerce performance in Q4 2024.
While Sea’s Q4 earnings are mixed, investors focused on the strong revenue growth instead of the EPS miss. This has SE stock up 6.35% as of this writing, building on a 23.78% increase year-to-date and a 135.57% rally over the past 52 weeks.
What’s Next for SE Stock?
Sea Chairman and CEO Forrest Li spoke about the company’s future in its latest earnings report. He expects its e-commerce business to “continue delivering profitable growth in 2025,” with “Shopee’s full year 2025 GMV growth to be around 20%.”
Concerning Sea’s digital financial services, Li said the company expects 2025 “loan book size to grow meaningfully faster than Shopee’s GMV annual growth rate.” This will be due to improved “credit penetration both on- and off-Shopee.”
Finally, Li addressed the company’s 2025 digital entertainment plans. He stated it “will continue scaling our user base and broadening our content offerings,” with “Garena to grow double digit year-on-year.”
Is SE Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus estimate for Sea is Strong Buy based on seven Buy and one Hold ratings over the last three months. With that comes an average price target of $135.21, a high of $157, and a low of $110. This represents a potential 3.83% upside for SE stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
