Ticker: SE
Description of why you are requesting DD: This stock caught my attention first through the AI-Options Signal on the discord. When I posed the question on the Trading Floor to see if anyone knew anything about this stock, Thots responded that she had found a large OI for 250c for March. I read a couple of articles on the company off Motley Fool and found the following:
SE is a Singapore based company that does work in E-Commerce (shopee), Gaming (Garena), and Fintech (Sea Money).
Market Cap: $80.45 billion
Recent Earnings (November 2nd):
–$3.5 billion in Long Term Debt
–$11.7 billion in ash and Short Term Investments
–Revenue: $2.7 billion +122%
–Gross Profit: $1.0 billion
–Digital Entertainment (DE) Revenue $1.2 billion +29%
–DE ADJ EBITDA $715 million
–Free Fire is the highest grossing mobile game in Southeast Asia and Latin America for 9 consecutive quarters
–Ecommerce Revnue is $1.5 billion +134% but is not ADJ EBITDA Profitable
Future Growth:
–Continued expansion into Europe and LATAM
–Free Fire continues to be one of the top games
Risks:
–Expanding too quickly
–dependent on single game traction
–competitiion in all market
–valuation
^Source 1
One analyst at MF stated that it would be a good inflationary play as it is spread across 15 different countries and because folks will continue to spend money on gaming in an inflationary environment. The final note for this upcoming ER and the run up to it, is that investors may look to overseas companies to hedge against any perceived risks in the American market.
^Source 2
I don’t know enough on OI to comment on that portion of this play, but I would be appreciative of any comments on the technicals or fundamentals. If you have any questions for me, I go by Commodore1648 on TF–Thanks, y’all.
Applicable links to news articles or Reddit analysis: