Sea Ltd. Stock (SE) Finds Support Ahead of Earnings: What To Expect

Shares of Singapore-based technology giant Sea Limited (NYSE: SE) are trading at $159.20 as of today's pre-market. While the stock experienced a dip of 15.09% in the last month, the $150 level appears to be holding as analysts await the company's Q3 2025 earnings report, scheduled this morning.

Analysts expect around $0.95 EPS for the upcoming earnings period, up from about $0.75 EPS a year ago, indicating healthy earnings growth. On the revenue side, forecasts are around $5.62 billion, which reflects a strong year-over-year sales increase of roughly 29.8%. These estimates are fuelling some optimism, despite the current price being below key moving averages.

Sea Limited has experienced significant volatility in its stock price recently, driven by a combination of factors. On November 2nd, the stock hit a 52-week high of $126.43, marking a 189.07% increase over the past year. This surge reflected market confidence in the company's strong financial health, evidenced by a market capitalization of approximately $72 billion and 20% revenue growth over the last twelve months. Sea's diversified operations across e-commerce (Shopee), digital entertainment (Garena), and digital financial services (Monee) have been key drivers of this growth.

Shopee’s performance has been particularly noteworthy, reporting a 33.7% year-over-year increase in e-commerce revenues, reaching $3.8 billion in the second quarter of 2025. Garena also maintained strong momentum with a 28.4% rise in digital entertainment revenues, while Monee’s loan book soared by 94%, indicating significant expansion in digital financial services.

However, Sea Limited faces considerable competitive pressures, particularly in the Indonesian market. TikTok's re-entry into the Indonesian e-commerce arena through its acquisition of a 75.01% stake in Tokopedia poses a significant challenge to Shopee's market share. The integration of TikTok's massive user base with Tokopedia's established e-commerce platform could create a formidable competitor, potentially impacting Shopee's growth in this crucial market.

While the prevailing narrative focuses on Sea's growth potential and positive earnings estimates, a contrarian viewpoint suggests caution. The projected EPS growth for fiscal year 2026, while impressive, hinges on several assumptions, including continued market dominance and successful navigation of competitive pressures. The Indonesian market, in particular, presents a significant headwind.

TikTok's entry could trigger a price war, forcing Shopee to sacrifice profit margins to maintain market share. Furthermore, the lawsuit alleging financial misstatements casts a shadow of doubt on the company's past reporting practices. It's possible that the market is overly optimistic about Sea's future prospects and underestimating the challenges it faces. A correction could be in store if the company fails to meet the lofty expectations baked into its current valuation.

Sea Limited's stock is currently at a critical juncture. The upcoming earnings release will provide crucial insights into the company's performance and its ability to meet analyst expectations. The current level of support around $150could hold, but a disappointing earnings report could trigger further downside. Conversely, a strong report could propel the stock higher, potentially breaking through the 50-day and 200-day SMAs.