10 Best Internet Retail Stocks to Buy Now

5. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 63

Sea Limited (NYSE:SE) operates a multifaceted business model that leverages the synergies between e-commerce, digital financial services, and digital entertainment. These three business segments of the company are represented by its main platforms including Shopee, SeaMoney, and Garena.

Before diving into the financial performance of Sea Limited (NYSE:SE) it is important to understand each segment. Shopee is the e-commerce platform of the company that facilitates online shopping, providing a platform for both consumers and sellers. It integrates payment systems and logistics to enhance user experience. Whereas, SeaMoney, the digital financial services wing of the company offers various financial services, including digital payments, loans, and insurance products. It operates services like ShopeePay and SeaBank.

Lastly, Garena, which is a digital entertainment platform, is known for developing and publishing online games, with its flagship game being Free Fire, which has gained immense popularity globally.

The second quarter of fiscal 2024 showed that the company grew its total GAAP revenue by 23% year-over-year to reach $3.8 billion. Revenue growth was on the back of exceptional performance in its e-commerce and digital financial services segments. The e-commerce segment revenue grew 40.3% year-over-year, whereas the digital financial services revenue was up 21.4% during the same time.

The digital entertainment segment was also a success story as gross bookings for the segment improved by 21% year-over-year to reach $537 million.

What’s more impressive is Sea Limited’s (NYSE:SE) gross profit, which grew 9.2% during the same time to reach $1.6 billion. Looking ahead, management believes that it will become an adjusted EBITDA-positive company in Q3 and has also improved its Shopee full-year guidance to mid-20% growth. Sea Limited (NYSE:SE) is one of the best internet retail stocks to buy now.

Artisan Developing World Fund stated the following regarding Sea Limited (NYSE:SE) in its Q3 2024 investor letter:

“Top contributors to performance for the quarter included Southeast Asian e-commerce leader Sea Limited (NYSE:SE). Sea rose due to an improved competitive environment in its Shopee e-commerce business that set the stage for commission increases, while a positive inflection in its gaming business surprised market participants.”