E-commerce stock on the rise: Discover an alternative to Amazon with a predicted increase of 133%
Sea Limited, the Singapore-based technology conglomerate, is currently exhibiting strong growth potential, with exceptional earnings momentum and solid fundamental growth. The company, which operates Southeast Asia's most dominant e-commerce platform, Shopee, reported a staggering 2,740% year-over-year EPS growth (TTM) and a nearly 30% year-over-year revenue increase during the first quarter of 2025.
Sea's e-commerce segment generated $264.4 million in adjusted EBITDA during the same period, while its digital financial services segment delivered $241.1 million in adjusted EBITDA, nearly as much profit as the e-commerce segment on 77% less revenue. Shopee processed 3.1 billion orders worth $28.6 billion during the first quarter of 2025.
The company's financial service platform, Monee, lends money to merchants on Shopee and offers buy now, pay later loans. Monee's loan book hit an all-time high of $5.8 billion in Q1 2025, a 76.5% increase from the year-ago period.
Sea's stock, which closed at $153.52 on June 23, 2022, currently trades around $148. Analysts' average 12-month price targets are near $153, and some forecasts go as high as $200. If Sea stock were to climb 133% to reclaim its all-time high of $357.78 over the next 18 months (by the end of 2026), its P/S ratio would be around 8.4.
Comparing Sea Limited to Amazon's growth over the past 10 years, Amazon’s stock experienced massive expansion, driven by continuous innovation, market dominance in e-commerce and cloud computing, and consistent profitability improvements. Amazon's stock price rose several hundred percent over the last decade, transforming it into one of the largest companies globally with diversified profitable businesses.
However, Sea Limited is in a much earlier phase of growth, particularly in emerging markets (e-commerce, digital entertainment, and digital financial services across Southeast Asia). Its potential for rapid growth is high, as demonstrated by its EPS surge and revenue growth, but it also carries more risk relative to Amazon’s now mature business model.
| Aspect | Sea Limited (Current) | Amazon (Past 10 years) | |----------------------------|---------------------------------------------|--------------------------------------------| | Growth Phase | Early high growth with rapid EPS/revenue increase | Mature growth after dominant market position | | EPS Growth (Recent/Annual) | 2,740% year-over-year EPS growth (TTM) | Steady, but less explosive EPS growth | | Revenue Growth | ~30% year-over-year | Strong double-digit for many years, then slower as scale increases | | Market Position | Emerging market leader in Southeast Asia | Global market leader in e-commerce & cloud | | Risk Profile | Higher volatility, lower net margins, some earnings misses | More stable, established profitability | | Analyst Sentiment | Moderate Buy, price target $153-$200 | Generally strong buy rating historically |
Investors attracted to momentum and emerging markets might find Sea Limited compelling, but it is not yet at Amazon’s level of stability or scale. Sea is also the parent company of Garena, a successful mobile gaming development studio. As always, potential investors should carefully consider their risk tolerance and conduct thorough research before making investment decisions.
- The technology segment of Sea Limited, a Singapore-based conglomerate, includes its e-commerce platform, Shopee, and digital financial services platform, Monee, which have shown impressive growth, with Monee's loan book reaching an all-time high of $5.8 billion in Q1 2025.
- While Sea Limited currently exhibits strong growth potential, its stock price may not yet approach Amazon's level of stability and scale, as the latter has experienced steady and substantial growth over the past 10 years in the mature e-commerce and cloud computing markets.
- Nevertheless, Sea Limited presents attractive opportunities for investors focused on momentum and emerging markets, particularly in the e-commerce, digital entertainment, and digital financial services sectors across Southeast Asia. However, investors should carefully assess their risk tolerance and conduct thorough research before making investment decisions.
