Thread by @SimonSaysStocks

Sea Limited is a 3-headed monster

With Garena, Shopee and, SeaMoney, $SE dominates the internet in Southeast Asia

Garena's already profitable, it generated $740M in EBITDA last quarter

Sea guided for $4.6B revenue in digital entertainment bookings for 2021 44% YoY growth

The power of a digital entertainment platform and eCommerce platform, tied together by SeaMoney, its financial services branch, will result in highly attractive products for consumers, merchants, and developers within the Southeast Asia region as well as new key internationally

Sea is creating an extremely strong customer Moat

It is using profits from Garena to drive Shopee’s growth.

How?

International Expansion.

First Latin America and now expanding to Europe (Spain, Poland, and France)

The “social first” e-commerce platform caters to the specific regions where it operates and tailors the platform for each user.

This contributes to Shopee’s success in new regions like Brazil.

https://twitter.com/FromValue/status/1453022979345068036?s=20

Shopee is Sea’s next significant revenue driver and grew at 160% YoY and generated $1.2B

$SE guided for $4.8B in eCommerce revenue, 122% YoY growth

Check out Shopee’s growth in Argentina

https://twitter.com/MaxTheComrade/status/1453744532638556163?s=20

Shopee gives sellers access to management tools such as order tracking, targeted promotions, and other marketing campaigns, thanks to accessible SKU-level data.

SKU level data is a gamechanger

Shopee's expansion into new regions brings more sellers to its platform

This gives them more SKUs and enables them to understand more consumers in new geographies.

Selling small ticket items gives Sea insights to data that’s typically highly fragmented amongst many suppliers and data from much smaller purchases.

Selling smaller ticket items enables Sea to effectively roll out Shopee in regions new to eCommerce and sell a wide range of products, while Sea doesn’t need to take much inventory risk.

This is why SeaMoney represents $SE's most favorable long-term business segment

SeaMoney will be huge because it'll create synergies across Sea's business segments

"SeaMoney represents a huge long-term opportunity for Sea to offer financial services and utilize embedded finance to make the most of its digital entertainment and eCommerce platforms."

By Sea understanding all the data from the consumers, helped by its digital entertainment platform, as well as understanding sellers, it will enable SeaMoney to control the flow of funds between parties while also controlling the data; from the SKUs to the consumer.

This means $SE is well-positioned to expand its financial services branch, as Shopee enters new regions and learns new customer behavior in new regions

Sea will look to create a Super App that connects with a bank account, insurance, or other apps like its food delivery service

Based on our valuation, $SE is worth $322.67 today.

Check out my latest note on Sea Limited!

Sea Limited: Here's Why This Digital Ecosystem Still Has Upside seekingalpha.com/article/446423…

.@FromValue
@jiggycapital
@HaydenCapital
@MaxTheComrade
@MadsC007
@BrianFeroldi