- Sea Limited (NYSE: SE) reported robust first-quarter 2026 financial results, with significant growth in GAAP revenue, gross profit, net income, and Adjusted EBITDA.
- Investment bank Jefferies reiterated its “Buy” rating for Sea Limited, raising its price target to $157, suggesting substantial potential upside from the current stock price of $97.22.
- Despite strong performance, market concerns persist regarding Shopee’s 2026 guidance, potential margin compression, and rising costs and loan-loss provisions within SeaMoney.
Sea Limited (NYSE: SE) is a global consumer internet company with major businesses in e-commerce, digital financial services, and digital entertainment. Its e-commerce platform, Shopee, competes with rivals like Lazada, which is part of the Alibaba Group (NYSE: BABA). The company also operates SeaMoney for digital payments and financial services.
On May 12, 2026, the investment bank Jefferies reiterates its Buy rating for Sea Limited. It also raises its price target on the company to $157 from $150. This update comes at a time when the stock price is $97.22, suggesting significant potential upside in the view of the analyst.
This positive rating follows the company’s strong first-quarter 2026 financial results. As highlighted by Business Wire, Sea Limited reports its GAAP revenue surges by 46.6% year-over-year to $7.1 billion. The company’s gross profit, which is revenue minus the cost of goods sold, also increases by 40.7% to $3.1 billion.
Profitability also shows growth, with net income rising 6.7% to $438.2 million. Adjusted EBITDA, a metric that shows a company’s operating performance, grows 9.3% to $1.0 billion. The CEO states that the company is focused on deepening its competitive advantages while remaining financially disciplined.
Despite this performance, the market has some concerns. As noted by Seeking Alpha, there is skepticism about Shopee’s 2026 guidance, which suggests potential margin compression, or shrinking profit margins. Additionally, as highlighted by Zacks, rising costs and higher loan-loss provisions are challenges, driven by an 80.4% surge in SeaMoney’s loan book.
