$Sea(SE.US)

Sea Limited: Monee Strengthens the Bull Case, But Valuation Demands Discipline

Sea Limited’s Q2 2026 results reinforce the investment case. Revenue jumped 48.1% year-on-year to US$7.8 billion, while net income rose 10.6% to US$458 million. Monee’s consumer and SME loans surged 62.5% to US$11.1 billion, with non-performing loans stable at just 1%. Shopee also delivered US$255 million adjusted EBITDA, while Garena bookings grew 15.5%. (Yahoo Finance⁠)

The key risk is profitability: credit-loss provisions rose 71.5%, faster than revenue, while EPS growth lagged sharply. (Yahoo Finance⁠)

Analysts remain constructive, with average targets around US$155–157 versus roughly US$116 currently, although targets range widely from US$101 to US$195. (MarketScreener⁠) Technically, the rebound from the US$80s has been powerful, but the recent pullback suggests consolidation after the earnings surge.

Position: BUY in tranches, rather than chase momentum. Fundamentals are improving, but valuation already discounts substantial growth.

For option writers, a cash-secured put around US$105–110 offers a better risk/reward entry. Existing shareholders can consider covered calls around US$140–150 to monetise elevated volatility while retaining upside.

Not financial advice.