We recently published a list of Top 10 Stocks to Buy According to Think Investments. In this article, we are going to take a look at where Sea Limited (NYSE:SE) stands against other top stocks to buy according to Think Investments.
Think Investments is an investment firm based in San Francisco, with additional offices in Singapore and India. The firm focuses on long-term investments in both public and private companies, emphasizing creative research to identify high-potential opportunities. Specializing in technology-driven early-stage businesses, Think Investments partners with its strong management teams to build differentiated companies that generate high returns on invested capital. With a deep understanding of emerging markets and global technology, the firm is well-positioned to navigate complex investment landscapes.
Founded in 2013 by Shashin Shah, Think Investments has established itself as a key player in global markets. The firm has over $1 billion invested in Indian companies operating in the financial services, healthcare, technology, and consumer sectors. Think’s investment strategy is guided by Shah’s extensive experience in global equity markets, ensuring a disciplined approach to capital allocation. The firm’s commitment to long-term value creation has made it a trusted partner for relatively young companies looking to scale efficiently.
Shashin Shah, Founder and Managing Partner, brings decades of expertise in global investing. Before launching Think Investments, he was a partner at Valiant Capital, where he managed multiple international markets, including India, the U.S., Europe, Asia, the Middle East, and North Africa. Shah also worked at Blue Ridge Capital and Morgan Stanley, further honing his investing skills. His academic background includes a bachelor’s degree in computer engineering from the University of Mumbai and an MBA from the University of Texas, equipping him with a strong analytical and financial foundation.
In addition to leading Think Investments, Shah plays an active role in shaping the growth of innovative companies. He currently serves on the boards of Chaayos, a tea café chain, and Dream11, India’s leading fantasy sports platform. His leadership and strategic insights continue to drive Think’s success, solidifying its reputation as a premier investment firm in global markets.
As of its latest filing for the fourth quarter of 2024, Think Investments reported managing approximately $454.51 million in 13F securities, of which the firm’s top ten holdings account for 80.57%.
Our Methodology
The stocks discussed below were picked from Think Investments’ Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician installing hardware in a modern server room, highlighting the company’s focus on on-premise environments.
Sea Limited (NYSE:SE)
Number of Hedge Fund Holders as of Q4: 86
Think Investments’ Equity Stake: $35.58 Million
Sea Limited (NYSE:SE), a Singapore-based technology conglomerate, continues to strengthen its position across e-commerce, gaming, and digital financial services. The company first gained recognition for its successful game publishing business, particularly with Free Fire. Over the years, Sea Limited expanded its operations, launching Shopee as a dominant e-commerce platform and SeaMoney to provide digital financial services across Southeast Asia and beyond.
The company achieved remarkable growth in 2024, with all three of its core businesses, gaming, e-commerce, and digital finance, demonstrating double-digit growth. Also, 2024 was Sea Limited (NYSE:SE)’s second consecutive year of annual profitability, with each business segment delivering positive adjusted EBITDA. E-commerce was a key driver, with Shopee’s gross merchandise value (GMV) surging 28% year-over-year to surpass $100 billion. The platform also achieved adjusted EBITDA profitability in both Asia and Brazil, reinforcing its ability to balance growth with sustainable financial performance.
For the fourth quarter of 2024, Sea Limited (NYSE:SE) reported revenue of $5 billion, marking a 36.9% year-over-year increase. Gross profit rose by 44.6% to $2.2 billion, and the company posted a net income of $237.6 million, a significant upside from the $111.6 million net loss recorded in the same quarter of 2023. Adjusted EBITDA soared to $590.9 million, up from $126.7 million a year earlier. As of December 31, 2024, the company’s cash, cash equivalents, short-term investments, and other treasury holdings totaled $10.4 billion, reflecting a net increase of $478.6 million from the previous quarter.
With its diversified business model and continued focus on profitability, Sea Limited (NYSE:SE) remains well-positioned for sustained growth. Looking ahead to 2025, the company expects Shopee’s full-year GMV growth to be around 20%, with further improvements in profitability. As it continues to scale its operations across key markets, the company is set to maintain its momentum as one of Southeast Asia’s leading digital economy players.
SaltLight Capital stated the following regarding Sea Limited (NYSE:SE) in its Q3 2024 investor letter:
“Sea Limited (NYSE:SE), which is focused on Southeast Asia, has the wildly successful Free Fire game franchise, first launched in 2017.
Free Fire has an astounding 648 million quarterly active users and 53 million paying players, spending an average of $42 a year8 . The company’s large user base is due to its game design being playable on lower-spec phones, which are more prevalent in emerging markets. Nevertheless, the business makes good money overall. Over the last twelve months, SEA Ltd made $1bn EBITDA with 50% margins. This is a phenomenal business that doesn’t require much capex to grow.
Our view is that the market has underappreciated the annuity-like nature of these evergreen game franchise businesses. Tencent, in particular, is valued at a multiple that doesn’t appreciate the nature of the game business…” (Click here to read the full text)
Overall, SE ranks 6th on our list of top stocks to buy according to Think Investments. While we acknowledge the potential of SE, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.