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Racheling89
2021-12-20
Strong buy!!! 💪🏻💪🏻
Sea Stock: Down 43% From Its High, is a Buy Now?
Racheling89
2021-11-11
To the moon!!!
2 Unstoppable Stocks That Could Produce 10X Returns
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💪🏻💪🏻","listText":"Strong buy!!! 💪🏻💪🏻","text":"Strong buy!!! 💪🏻💪🏻","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/693163611","repostId":"1109541249","repostType":2,"repost":{"id":"1109541249","pubTimestamp":1639972523,"share":"https://www.laohu8.com/m/news/1109541249?lang=&edition=full","pubTime":"2021-12-20 11:55","market":"us","language":"en","title":"Sea Stock: Down 43% From Its High, is a Buy Now?","url":"https://stock-news.laohu8.com/highlight/detail?id=1109541249","media":"Seeking Alpha","summary":"Summary\n\nSea Limited stock has been battered recently as growth stocks sold off massively in the mar","content":"<p><b>Summary</b></p>\n<ul>\n <li>Sea Limited stock has been battered recently as growth stocks sold off massively in the market.</li>\n <li>However, we believe that the fundamental thesis on its rapid growth remains robust.</li>\n <li>We discuss why investors should capitalize on its recent significant correction to add exposure.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aa5cbe0a30acc723a2c6f62300024002\" tg-width=\"1536\" tg-height=\"1024\" referrerpolicy=\"no-referrer\"><span>kokkai/iStock Unreleased via Getty Images</span></p>\n<p><b>Investment Thesis</b></p>\n<p>Sea Limited(NYSE:SE) stock is one of our highest conviction growth stocks that has been severely battered over the last month. Since its recent all-time high (ATH) in October, its price has dropped by a dramatic 43%. Many reasons have been presented on why the stock has fallen. We exhort investors not to read too much into them. We believe nothing material has changed from its fundamental thesis. The stock has had a remarkable run in 2021 relative to its gaming peers or e-tailer peers. Therefore, profit-taking of this extent should not be surprising as fear struck growth stocks.</p>\n<p>Moreover, the recent significant correction in growth stocks across the market has also hit SE stock hard. But, we are not concerned. Significant volatility will always be a factor influencing the performance of growth stocks like SE in the short term.</p>\n<p>Notably, we observed that the consensus target price on SE stock had been revised upwards since its FQ3 report card. Moreover, the gap between its price target and its current stock price has been greater than its last significant correction in April/May.</p>\n<p>Our internal DCF valuation model also points to a stock that is now significantly undervalued. Thanks to the market's myopia, we have been presented with another fantastic opportunity since April/May to add SE stock with great fervor again.</p>\n<p>We discuss why we think investors should not miss this incredible opportunity to add exposure to an outstanding growth stock.</p>\n<p><b>SE Stock YTD Performance</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6c191d1f0f6a10e392845cdbda1264aa\" tg-width=\"640\" tg-height=\"331\" referrerpolicy=\"no-referrer\"><span>SE stock YTD performance (as of 17 December'21).</span></p>\n<p>As a result of the significant correction recently, SE stock's YTD return has dropped to 6.9%, thus underperforming the market. Notably, its YTD gain was as high as 80% in October/early November. Despite that, the stock is still outperforming its e-tailer and gaming peers, as shown above.</p>\n<p><b>Sea Stock Estimates Have Consistently Been Revised Upwards</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8555128e2a30e924dd6c2dd162a27eea\" tg-width=\"640\" tg-height=\"396\" referrerpolicy=\"no-referrer\"><span>Sea Limited revised revenue mean consensus estimates. Data source: S&P Capital IQ, Seeking Alpha</span></p>\n<p>Readers can quickly observe that the company's revenue consensus estimates for FY21-23 have consistently been revised upwards over the last five months. These revisions lend credence to the robust growth prospects of the company over the next two years. Notably, Sea Limited's revenue is estimated to increase at a phenomenal CAGR of 42.8% through FY23.</p>\n<p>There were concerns over the growth rates of its Garena gaming arm in its FQ3 report card.We also explained in our previous article that Sea Limited has clearly explained that investors should expect normalization in Garena's growth after two spectacular years. However, its monetization capability continues to dazzle. Therefore, we are confident that Garena can continue its robust monetization strategies moving forward.</p>\n<p>Moreover, data from Sensor Tower's recent gaming statistics continue to point to sturdy performance from its Free Fire game. It continues to be ranked among the top ten mobile games in terms of overall gaming revenue in November. Moreover, it's also ranked#2 in overall downloadsacross both the App Store and Google Play. Notably, it's also among eight games globally whose annual revenue crossed $1B as of 14 December. Therefore, we think the sentiments and chatter about Free Fire's \"one-shot wonder\" have been overblown.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/51247ba1efd7fa6d333b482446e94c9a\" tg-width=\"515\" tg-height=\"380\" referrerpolicy=\"no-referrer\"><span>Global games market forecast. Source: Google, Newzoo</span></p>\n<p>In addition, the global gaming market is estimated to experience a slight decline to $175.8B after last year's massive 23% growth to $177.8B. However, given Garena's impressive growth in FY21 despite the decline in the global market, we believe it validates its business model and prospects. Notably, the gaming market is expected to reverse its decline moving forward. Therefore, Garena's leadership in mobile gaming could continue to propel its growth underpinned by the recovery in the global gaming market.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0a0612da9a19f7b7198d43213b4f4470\" tg-width=\"640\" tg-height=\"396\" referrerpolicy=\"no-referrer\"><span>Shopee adjusted EBITDA per order. Data source: Company filings</span></p>\n<p>But, some investors may have been spooked by Shopee's (Sea Limited's e-commerce arm) continued expansion into new geographical markets. Notably, Shopee continues to report adjusted EBITDA loss per order, as shown above. Therefore, some investors might have been concerned about whether the company's plate is getting too much to handle. Over the last three months, the company has entered into new markets such as India, France, Spain, and Poland. They are in addition to its battle with MercadoLibre (MELI) in Latin America, particularly Brazil. As a result, there are concerns on whether Sea Limited could continue its adroit execution in these markets while still making losses. We believe such concerns are valid. However, Sea Limited has shown its tremendous capability in penetrating the most important markets where the incumbents have strong leadership. It includes Lazada (BABA) in Southeast Asia, MercadoLibre in Brazil, and Tokopedia in Indonesia. Shopee was never the first-mover. But, it took advantage as the \"late-comer\" as it sought to compete with the incumbents. It's important to note that Sea Limited is not averse to competition. It has thrived against the incumbents and has made the e-commerce space in these geographical regions much more competitive.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/80938433e2d55307ca40000eeea2a26f\" tg-width=\"640\" tg-height=\"396\" referrerpolicy=\"no-referrer\"><span>Sea Limited revised adjusted EPS mean consensus estimates. Data source: S&P Capital IQ, Seeking Alpha</span></p>\n<p>Nevertheless, the road towards profitability might be stretched further due to its e-commerce expansion. Readers can quickly glance over the chart above, where its adjusted EPS estimates have been revised downwards through FY23 over the last five months. However, we believe that if you are a long-term investor with a five-year horizon at least, it's not a cause for concern. Earlier investors in Sea Limited can keenly recall the company's massive adjusted EBITDA per order losses, as seen in the previous chart. Shopee has scaled tremendously over the last five years and has improved its operating leverage further. But, it's important to note that it takes time to scale up. Therefore, earlier losses in new geographical markets are expected. But, management has demonstrated its execution capability over the last three years. Considering its much reduced adjusted EBITDA losses over the previous few years, we believe that Shopee is even better positioned than before to navigate its expansion.</p>\n<p><b>So, is SE Stock a Buy Now?</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3dbc835e49ded8a7a0e5f4fcc9e10649\" tg-width=\"640\" tg-height=\"384\" referrerpolicy=\"no-referrer\"><span>SE stock EV/NTM Revenue 4Y mean.</span></p>\n<p>SE stock is trading at an EV/NTM Revenue of 8.3x. Therefore, it has brought it back to its 4Y NTM revenue multiple mean of 8.6x. We believe there's a fantastic opportunity right now as the market has undoubtedly overreacted. As demonstrated clearly, SE is still expected to generate massive revenue growth moving ahead, even though it means the road to profitability gets further extended.</p>\n<p>Considering its FY23 revenue estimate, SE stock is trading at just 5.8x FY23 revenue. No one can accurately predict where the stock will be headed over the next few months. But, we think it represents a tremendous opportunity right now.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3bea18a0bdfd970ea640308dc35e099c\" tg-width=\"635\" tg-height=\"362\" referrerpolicy=\"no-referrer\"><span>SE stock price target Vs. actual price trend. Source: Seeking Alpha</span></p>\n<p>Moreover, readers can observe that the valuation gap between SE stock's consensus price target (PT) of $405.87 and its current price has never been more significant in a while. It's even more pronounced than its last significant correction in April/May. Notably, the consensus price target has been revised upwards despite the so-called \"gaming headwinds.\" And, if you look at the price chart, SE stock price has followed the revised PT trend very consistently over time. Therefore, the current price could be one of the most significant discounts you could observe in a long time.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/939a544ab94c9e2a2b8a6db943703b39\" tg-width=\"910\" tg-height=\"602\" referrerpolicy=\"no-referrer\"><span>SE stock DCF valuation model. Data source: S&P Capital IQ, company filings, author</span></p>\n<p>Our DCF model also shows that SE stock is now significantly undervalued with an implied fair value of $371.46. We have also used reasonable estimates in our model. Moreover, we believe that SE will continue to gain significant operating leverage as it scales in the new markets. We estimate that its adjusted EBITDA margins could reach 15% by FY25.</p>\n<p>Lastly, the stock is also testing a critical support level that has strongly underpinned the stock's advance since early 2021. Therefore, there are sufficient reasons to believe that the current entry point to add exposure to SE stock seems very attractive now.</p>\n<p>Consequently,<i>we revise our rating on SE stock to Strong Buy</i>.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Stock: Down 43% From Its High, is a Buy Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Stock: Down 43% From Its High, is a Buy Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-20 11:55 GMT+8 <a href=https://seekingalpha.com/article/4475931-sea-se-down-significantly-stock-strong-buy><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nSea Limited stock has been battered recently as growth stocks sold off massively in the market.\nHowever, we believe that the fundamental thesis on its rapid growth remains robust.\nWe discuss ...</p>\n\n<a href=\"https://seekingalpha.com/article/4475931-sea-se-down-significantly-stock-strong-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://seekingalpha.com/article/4475931-sea-se-down-significantly-stock-strong-buy","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1109541249","content_text":"Summary\n\nSea Limited stock has been battered recently as growth stocks sold off massively in the market.\nHowever, we believe that the fundamental thesis on its rapid growth remains robust.\nWe discuss why investors should capitalize on its recent significant correction to add exposure.\n\nkokkai/iStock Unreleased via Getty Images\nInvestment Thesis\nSea Limited(NYSE:SE) stock is one of our highest conviction growth stocks that has been severely battered over the last month. Since its recent all-time high (ATH) in October, its price has dropped by a dramatic 43%. Many reasons have been presented on why the stock has fallen. We exhort investors not to read too much into them. We believe nothing material has changed from its fundamental thesis. The stock has had a remarkable run in 2021 relative to its gaming peers or e-tailer peers. Therefore, profit-taking of this extent should not be surprising as fear struck growth stocks.\nMoreover, the recent significant correction in growth stocks across the market has also hit SE stock hard. But, we are not concerned. Significant volatility will always be a factor influencing the performance of growth stocks like SE in the short term.\nNotably, we observed that the consensus target price on SE stock had been revised upwards since its FQ3 report card. Moreover, the gap between its price target and its current stock price has been greater than its last significant correction in April/May.\nOur internal DCF valuation model also points to a stock that is now significantly undervalued. Thanks to the market's myopia, we have been presented with another fantastic opportunity since April/May to add SE stock with great fervor again.\nWe discuss why we think investors should not miss this incredible opportunity to add exposure to an outstanding growth stock.\nSE Stock YTD Performance\nSE stock YTD performance (as of 17 December'21).\nAs a result of the significant correction recently, SE stock's YTD return has dropped to 6.9%, thus underperforming the market. Notably, its YTD gain was as high as 80% in October/early November. Despite that, the stock is still outperforming its e-tailer and gaming peers, as shown above.\nSea Stock Estimates Have Consistently Been Revised Upwards\nSea Limited revised revenue mean consensus estimates. Data source: S&P Capital IQ, Seeking Alpha\nReaders can quickly observe that the company's revenue consensus estimates for FY21-23 have consistently been revised upwards over the last five months. These revisions lend credence to the robust growth prospects of the company over the next two years. Notably, Sea Limited's revenue is estimated to increase at a phenomenal CAGR of 42.8% through FY23.\nThere were concerns over the growth rates of its Garena gaming arm in its FQ3 report card.We also explained in our previous article that Sea Limited has clearly explained that investors should expect normalization in Garena's growth after two spectacular years. However, its monetization capability continues to dazzle. Therefore, we are confident that Garena can continue its robust monetization strategies moving forward.\nMoreover, data from Sensor Tower's recent gaming statistics continue to point to sturdy performance from its Free Fire game. It continues to be ranked among the top ten mobile games in terms of overall gaming revenue in November. Moreover, it's also ranked#2 in overall downloadsacross both the App Store and Google Play. Notably, it's also among eight games globally whose annual revenue crossed $1B as of 14 December. Therefore, we think the sentiments and chatter about Free Fire's \"one-shot wonder\" have been overblown.\nGlobal games market forecast. Source: Google, Newzoo\nIn addition, the global gaming market is estimated to experience a slight decline to $175.8B after last year's massive 23% growth to $177.8B. However, given Garena's impressive growth in FY21 despite the decline in the global market, we believe it validates its business model and prospects. Notably, the gaming market is expected to reverse its decline moving forward. Therefore, Garena's leadership in mobile gaming could continue to propel its growth underpinned by the recovery in the global gaming market.\nShopee adjusted EBITDA per order. Data source: Company filings\nBut, some investors may have been spooked by Shopee's (Sea Limited's e-commerce arm) continued expansion into new geographical markets. Notably, Shopee continues to report adjusted EBITDA loss per order, as shown above. Therefore, some investors might have been concerned about whether the company's plate is getting too much to handle. Over the last three months, the company has entered into new markets such as India, France, Spain, and Poland. They are in addition to its battle with MercadoLibre (MELI) in Latin America, particularly Brazil. As a result, there are concerns on whether Sea Limited could continue its adroit execution in these markets while still making losses. We believe such concerns are valid. However, Sea Limited has shown its tremendous capability in penetrating the most important markets where the incumbents have strong leadership. It includes Lazada (BABA) in Southeast Asia, MercadoLibre in Brazil, and Tokopedia in Indonesia. Shopee was never the first-mover. But, it took advantage as the \"late-comer\" as it sought to compete with the incumbents. It's important to note that Sea Limited is not averse to competition. It has thrived against the incumbents and has made the e-commerce space in these geographical regions much more competitive.\nSea Limited revised adjusted EPS mean consensus estimates. Data source: S&P Capital IQ, Seeking Alpha\nNevertheless, the road towards profitability might be stretched further due to its e-commerce expansion. Readers can quickly glance over the chart above, where its adjusted EPS estimates have been revised downwards through FY23 over the last five months. However, we believe that if you are a long-term investor with a five-year horizon at least, it's not a cause for concern. Earlier investors in Sea Limited can keenly recall the company's massive adjusted EBITDA per order losses, as seen in the previous chart. Shopee has scaled tremendously over the last five years and has improved its operating leverage further. But, it's important to note that it takes time to scale up. Therefore, earlier losses in new geographical markets are expected. But, management has demonstrated its execution capability over the last three years. Considering its much reduced adjusted EBITDA losses over the previous few years, we believe that Shopee is even better positioned than before to navigate its expansion.\nSo, is SE Stock a Buy Now?\nSE stock EV/NTM Revenue 4Y mean.\nSE stock is trading at an EV/NTM Revenue of 8.3x. Therefore, it has brought it back to its 4Y NTM revenue multiple mean of 8.6x. We believe there's a fantastic opportunity right now as the market has undoubtedly overreacted. As demonstrated clearly, SE is still expected to generate massive revenue growth moving ahead, even though it means the road to profitability gets further extended.\nConsidering its FY23 revenue estimate, SE stock is trading at just 5.8x FY23 revenue. No one can accurately predict where the stock will be headed over the next few months. But, we think it represents a tremendous opportunity right now.\nSE stock price target Vs. actual price trend. Source: Seeking Alpha\nMoreover, readers can observe that the valuation gap between SE stock's consensus price target (PT) of $405.87 and its current price has never been more significant in a while. It's even more pronounced than its last significant correction in April/May. Notably, the consensus price target has been revised upwards despite the so-called \"gaming headwinds.\" And, if you look at the price chart, SE stock price has followed the revised PT trend very consistently over time. Therefore, the current price could be one of the most significant discounts you could observe in a long time.\nSE stock DCF valuation model. Data source: S&P Capital IQ, company filings, author\nOur DCF model also shows that SE stock is now significantly undervalued with an implied fair value of $371.46. We have also used reasonable estimates in our model. Moreover, we believe that SE will continue to gain significant operating leverage as it scales in the new markets. We estimate that its adjusted EBITDA margins could reach 15% by FY25.\nLastly, the stock is also testing a critical support level that has strongly underpinned the stock's advance since early 2021. Therefore, there are sufficient reasons to believe that the current entry point to add exposure to SE stock seems very attractive now.\nConsequently,we revise our rating on SE stock to Strong Buy.","news_type":1},"isVote":1,"tweetType":1,"viewCount":526,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":870875362,"gmtCreate":1636606055556,"gmtModify":1636606055556,"author":{"id":"3567674825770783","authorId":"3567674825770783","name":"Racheling89","avatar":"https://static.tigerbbs.com/840f90f6593eaeda4fa762b7d02d006d","crmLevel":3,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"To the moon!!! ","listText":"To the moon!!! ","text":"To the moon!!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/870875362","repostId":"2182039707","repostType":4,"repost":{"id":"2182039707","pubTimestamp":1636602066,"share":"https://www.laohu8.com/m/news/2182039707?lang=&edition=full","pubTime":"2021-11-11 11:41","market":"us","language":"en","title":"2 Unstoppable Stocks That Could Produce 10X Returns","url":"https://stock-news.laohu8.com/highlight/detail?id=2182039707","media":"Motley Fool","summary":"A long-term mindset is the secret to building life-changing wealth.","content":"<p>A long-term mindset is <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the most important qualities any investor can possess. In most cases, life-changing wealth doesn't accumulate overnight. Instead, it takes time for compounding to work its magic, but that doesn't mean the process is complicated. All you need is patience and a diversified portfolio of high-quality stocks.</p>\n<p><b>SoFi Technologies</b> (NASDAQ:SOFI) and <b>Upstart Holdings</b> (NASDAQ:UPST) participate in the unstoppable fintech industry, and both stocks have the potential to grow tenfold in value over the next decade. Here's what you should know.</p>\n<h2>1. SoFi Technologies</h2>\n<p>SoFi is a mobile-first fintech company. Its platform includes lending products like student loans and mortgages as well as financial services like money management accounts (SoFi Money), brokerage services (SoFi Invest), credit cards (SoFi Credit Card), and access to third-party insurance products (SoFi Protect).</p>\n<p>In 2020, SoFi also acquired Galileo, a technology platform that allows financial companies to provision digital banking services. For instance, Galileo makes it possible to issue physical or digital debit cards, create deposit accounts, and process payments. Several well-known fintechs rely on Galileo, including Chime, MoneyLion, and <b>Robinhood Markets </b>(NASDAQ:HOOD).</p>\n<p>The breadth and simplicity of SoFi's platform gives it an edge over many other rivals, and that has helped the company grow quickly. In fact, SoFi's member base has accelerated for eight consecutive quarters, and the number of products used by those members has grown even faster. Collectively, that tremendous engagement drove revenue of $231 million, up 101%.</p>\n<p>Going forward, SoFi puts its market opportunity at $2 trillion, meaning it has plenty of room to grow its business. To that end, in March 2021, the company submitted its application to become a bank holding company, and it entered into an agreement to acquire Golden Pacific Bank. Once SoFi has a national bank charter, the resultant synergies should supercharge its business.</p>\n<p>The company currently relies on bank partners to provide money management services to SoFi Money account holders. But with a bank charter, SoFi could provide those services directly. In turn, that would allow it to fund loans with customer deposits, meaning lower interest rates for borrowers and higher interest rates for SoFi Money account holders. That would not only create value for members, but it would improve the unit economics for SoFi. That's why this stock (with an $18 billion market cap) could grow tenfold over the next decade, becoming a $180 billion company.</p>\n<h2>2. Upstart Holdings</h2>\n<p>Upstart is fintech company that's disrupting the consumer lending industry. Traditionally, banks have used credit models that incorporate (at most) 30 variables to determine who qualifies for financing and at what interest rate. However, Upstart believes those models deny many creditworthy borrowers, and that many people who are approved are charged too much. Case in point: 80% of Americans have never defaulted on a loan, but just 48% have access to prime credit.</p>\n<p>To that end, Upstart leans on artificial intelligence to make consumer financing more inclusive and efficient. Its platform collects over 1,600 data points per applicant, and measures those variables against 10.5 million repayment events. That allows Upstart to quantify risk more precisely than alternative methods. In fact, the company believes its AI models are four to eight times more effective than traditional credit models.</p>\n<p>Who does that benefit? Everybody. Consumers benefit from greater approval rates and lower interest rates, while Upstart's bank partners benefit from greater approval rates (more business) and lower loss rates. And the network effect created by Upstart's AI models should reinforce those benefits over time. In other words, as its platform is used to originate more loans, Upstart will collect more data, making its predictive engine more intelligent.</p>\n<p>Not surprisingly, Upstart is growing at a phenomenal pace. During the second quarter, bank partners originated $2.8 billion in loans using its technology, up 1,605% from the prior year. That caused revenue to skyrocket 1,018% to $194 million, and the company posted a profit according to generally accepted accounting principles (GAAP) of $37 million.</p>\n<p>Shareholders have plenty of reasons to be excited about this company. Upstart recently entered the auto lending space, bumping its market opportunity to $719 billion, but the company plans to pursue other markets the future, including credit cards, student loans, and mortgages. That would boost its total addressable market (TAM) to $4.2 trillion. To put that in perspective, Upstart facilitated just $4.5 billion in loans through the first half 2021 (or $9 billion on an annualized basis), which represents 1.2% of its current TAM, and 0.2% of its potential TAM.</p>\n<p>That's why I think this $26 billion fintech stock can grow tenfold over the next 10 years.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>2 Unstoppable Stocks That Could Produce 10X Returns</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n2 Unstoppable Stocks That Could Produce 10X Returns\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-11 11:41 GMT+8 <a href=https://www.fool.com/investing/2021/11/10/2-stocks-that-could-produce-10x-returns-upstart/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>A long-term mindset is one of the most important qualities any investor can possess. In most cases, life-changing wealth doesn't accumulate overnight. Instead, it takes time for compounding to work ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/11/10/2-stocks-that-could-produce-10x-returns-upstart/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc.","UPST":"Upstart Holdings, Inc."},"source_url":"https://www.fool.com/investing/2021/11/10/2-stocks-that-could-produce-10x-returns-upstart/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2182039707","content_text":"A long-term mindset is one of the most important qualities any investor can possess. In most cases, life-changing wealth doesn't accumulate overnight. Instead, it takes time for compounding to work its magic, but that doesn't mean the process is complicated. All you need is patience and a diversified portfolio of high-quality stocks.\nSoFi Technologies (NASDAQ:SOFI) and Upstart Holdings (NASDAQ:UPST) participate in the unstoppable fintech industry, and both stocks have the potential to grow tenfold in value over the next decade. Here's what you should know.\n1. SoFi Technologies\nSoFi is a mobile-first fintech company. Its platform includes lending products like student loans and mortgages as well as financial services like money management accounts (SoFi Money), brokerage services (SoFi Invest), credit cards (SoFi Credit Card), and access to third-party insurance products (SoFi Protect).\nIn 2020, SoFi also acquired Galileo, a technology platform that allows financial companies to provision digital banking services. For instance, Galileo makes it possible to issue physical or digital debit cards, create deposit accounts, and process payments. Several well-known fintechs rely on Galileo, including Chime, MoneyLion, and Robinhood Markets (NASDAQ:HOOD).\nThe breadth and simplicity of SoFi's platform gives it an edge over many other rivals, and that has helped the company grow quickly. In fact, SoFi's member base has accelerated for eight consecutive quarters, and the number of products used by those members has grown even faster. Collectively, that tremendous engagement drove revenue of $231 million, up 101%.\nGoing forward, SoFi puts its market opportunity at $2 trillion, meaning it has plenty of room to grow its business. To that end, in March 2021, the company submitted its application to become a bank holding company, and it entered into an agreement to acquire Golden Pacific Bank. Once SoFi has a national bank charter, the resultant synergies should supercharge its business.\nThe company currently relies on bank partners to provide money management services to SoFi Money account holders. But with a bank charter, SoFi could provide those services directly. In turn, that would allow it to fund loans with customer deposits, meaning lower interest rates for borrowers and higher interest rates for SoFi Money account holders. That would not only create value for members, but it would improve the unit economics for SoFi. That's why this stock (with an $18 billion market cap) could grow tenfold over the next decade, becoming a $180 billion company.\n2. Upstart Holdings\nUpstart is fintech company that's disrupting the consumer lending industry. Traditionally, banks have used credit models that incorporate (at most) 30 variables to determine who qualifies for financing and at what interest rate. However, Upstart believes those models deny many creditworthy borrowers, and that many people who are approved are charged too much. Case in point: 80% of Americans have never defaulted on a loan, but just 48% have access to prime credit.\nTo that end, Upstart leans on artificial intelligence to make consumer financing more inclusive and efficient. Its platform collects over 1,600 data points per applicant, and measures those variables against 10.5 million repayment events. That allows Upstart to quantify risk more precisely than alternative methods. In fact, the company believes its AI models are four to eight times more effective than traditional credit models.\nWho does that benefit? Everybody. Consumers benefit from greater approval rates and lower interest rates, while Upstart's bank partners benefit from greater approval rates (more business) and lower loss rates. And the network effect created by Upstart's AI models should reinforce those benefits over time. In other words, as its platform is used to originate more loans, Upstart will collect more data, making its predictive engine more intelligent.\nNot surprisingly, Upstart is growing at a phenomenal pace. During the second quarter, bank partners originated $2.8 billion in loans using its technology, up 1,605% from the prior year. That caused revenue to skyrocket 1,018% to $194 million, and the company posted a profit according to generally accepted accounting principles (GAAP) of $37 million.\nShareholders have plenty of reasons to be excited about this company. Upstart recently entered the auto lending space, bumping its market opportunity to $719 billion, but the company plans to pursue other markets the future, including credit cards, student loans, and mortgages. That would boost its total addressable market (TAM) to $4.2 trillion. To put that in perspective, Upstart facilitated just $4.5 billion in loans through the first half 2021 (or $9 billion on an annualized basis), which represents 1.2% of its current TAM, and 0.2% of its potential TAM.\nThat's why I think this $26 billion fintech stock can grow tenfold over the next 10 years.","news_type":1},"isVote":1,"tweetType":1,"viewCount":410,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0}],"hots":[{"id":870875362,"gmtCreate":1636606055556,"gmtModify":1636606055556,"author":{"id":"3567674825770783","authorId":"3567674825770783","name":"Racheling89","avatar":"https://static.tigerbbs.com/840f90f6593eaeda4fa762b7d02d006d","crmLevel":3,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"To the moon!!! ","listText":"To the moon!!! ","text":"To the moon!!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/870875362","repostId":"2182039707","repostType":4,"isVote":1,"tweetType":1,"viewCount":410,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":693163611,"gmtCreate":1639987117091,"gmtModify":1639987117158,"author":{"id":"3567674825770783","authorId":"3567674825770783","name":"Racheling89","avatar":"https://static.tigerbbs.com/840f90f6593eaeda4fa762b7d02d006d","crmLevel":3,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Strong buy!!! 💪🏻💪🏻","listText":"Strong buy!!! 💪🏻💪🏻","text":"Strong buy!!! 💪🏻💪🏻","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/693163611","repostId":"1109541249","repostType":2,"repost":{"id":"1109541249","pubTimestamp":1639972523,"share":"https://www.laohu8.com/m/news/1109541249?lang=&edition=full","pubTime":"2021-12-20 11:55","market":"us","language":"en","title":"Sea Stock: Down 43% From Its High, is a Buy Now?","url":"https://stock-news.laohu8.com/highlight/detail?id=1109541249","media":"Seeking Alpha","summary":"Summary\n\nSea Limited stock has been battered recently as growth stocks sold off massively in the mar","content":"<p><b>Summary</b></p>\n<ul>\n <li>Sea Limited stock has been battered recently as growth stocks sold off massively in the market.</li>\n <li>However, we believe that the fundamental thesis on its rapid growth remains robust.</li>\n <li>We discuss why investors should capitalize on its recent significant correction to add exposure.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aa5cbe0a30acc723a2c6f62300024002\" tg-width=\"1536\" tg-height=\"1024\" referrerpolicy=\"no-referrer\"><span>kokkai/iStock Unreleased via Getty Images</span></p>\n<p><b>Investment Thesis</b></p>\n<p>Sea Limited(NYSE:SE) stock is one of our highest conviction growth stocks that has been severely battered over the last month. Since its recent all-time high (ATH) in October, its price has dropped by a dramatic 43%. Many reasons have been presented on why the stock has fallen. We exhort investors not to read too much into them. We believe nothing material has changed from its fundamental thesis. The stock has had a remarkable run in 2021 relative to its gaming peers or e-tailer peers. Therefore, profit-taking of this extent should not be surprising as fear struck growth stocks.</p>\n<p>Moreover, the recent significant correction in growth stocks across the market has also hit SE stock hard. But, we are not concerned. Significant volatility will always be a factor influencing the performance of growth stocks like SE in the short term.</p>\n<p>Notably, we observed that the consensus target price on SE stock had been revised upwards since its FQ3 report card. Moreover, the gap between its price target and its current stock price has been greater than its last significant correction in April/May.</p>\n<p>Our internal DCF valuation model also points to a stock that is now significantly undervalued. Thanks to the market's myopia, we have been presented with another fantastic opportunity since April/May to add SE stock with great fervor again.</p>\n<p>We discuss why we think investors should not miss this incredible opportunity to add exposure to an outstanding growth stock.</p>\n<p><b>SE Stock YTD Performance</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6c191d1f0f6a10e392845cdbda1264aa\" tg-width=\"640\" tg-height=\"331\" referrerpolicy=\"no-referrer\"><span>SE stock YTD performance (as of 17 December'21).</span></p>\n<p>As a result of the significant correction recently, SE stock's YTD return has dropped to 6.9%, thus underperforming the market. Notably, its YTD gain was as high as 80% in October/early November. Despite that, the stock is still outperforming its e-tailer and gaming peers, as shown above.</p>\n<p><b>Sea Stock Estimates Have Consistently Been Revised Upwards</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8555128e2a30e924dd6c2dd162a27eea\" tg-width=\"640\" tg-height=\"396\" referrerpolicy=\"no-referrer\"><span>Sea Limited revised revenue mean consensus estimates. Data source: S&P Capital IQ, Seeking Alpha</span></p>\n<p>Readers can quickly observe that the company's revenue consensus estimates for FY21-23 have consistently been revised upwards over the last five months. These revisions lend credence to the robust growth prospects of the company over the next two years. Notably, Sea Limited's revenue is estimated to increase at a phenomenal CAGR of 42.8% through FY23.</p>\n<p>There were concerns over the growth rates of its Garena gaming arm in its FQ3 report card.We also explained in our previous article that Sea Limited has clearly explained that investors should expect normalization in Garena's growth after two spectacular years. However, its monetization capability continues to dazzle. Therefore, we are confident that Garena can continue its robust monetization strategies moving forward.</p>\n<p>Moreover, data from Sensor Tower's recent gaming statistics continue to point to sturdy performance from its Free Fire game. It continues to be ranked among the top ten mobile games in terms of overall gaming revenue in November. Moreover, it's also ranked#2 in overall downloadsacross both the App Store and Google Play. Notably, it's also among eight games globally whose annual revenue crossed $1B as of 14 December. Therefore, we think the sentiments and chatter about Free Fire's \"one-shot wonder\" have been overblown.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/51247ba1efd7fa6d333b482446e94c9a\" tg-width=\"515\" tg-height=\"380\" referrerpolicy=\"no-referrer\"><span>Global games market forecast. Source: Google, Newzoo</span></p>\n<p>In addition, the global gaming market is estimated to experience a slight decline to $175.8B after last year's massive 23% growth to $177.8B. However, given Garena's impressive growth in FY21 despite the decline in the global market, we believe it validates its business model and prospects. Notably, the gaming market is expected to reverse its decline moving forward. Therefore, Garena's leadership in mobile gaming could continue to propel its growth underpinned by the recovery in the global gaming market.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0a0612da9a19f7b7198d43213b4f4470\" tg-width=\"640\" tg-height=\"396\" referrerpolicy=\"no-referrer\"><span>Shopee adjusted EBITDA per order. Data source: Company filings</span></p>\n<p>But, some investors may have been spooked by Shopee's (Sea Limited's e-commerce arm) continued expansion into new geographical markets. Notably, Shopee continues to report adjusted EBITDA loss per order, as shown above. Therefore, some investors might have been concerned about whether the company's plate is getting too much to handle. Over the last three months, the company has entered into new markets such as India, France, Spain, and Poland. They are in addition to its battle with MercadoLibre (MELI) in Latin America, particularly Brazil. As a result, there are concerns on whether Sea Limited could continue its adroit execution in these markets while still making losses. We believe such concerns are valid. However, Sea Limited has shown its tremendous capability in penetrating the most important markets where the incumbents have strong leadership. It includes Lazada (BABA) in Southeast Asia, MercadoLibre in Brazil, and Tokopedia in Indonesia. Shopee was never the first-mover. But, it took advantage as the \"late-comer\" as it sought to compete with the incumbents. It's important to note that Sea Limited is not averse to competition. It has thrived against the incumbents and has made the e-commerce space in these geographical regions much more competitive.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/80938433e2d55307ca40000eeea2a26f\" tg-width=\"640\" tg-height=\"396\" referrerpolicy=\"no-referrer\"><span>Sea Limited revised adjusted EPS mean consensus estimates. Data source: S&P Capital IQ, Seeking Alpha</span></p>\n<p>Nevertheless, the road towards profitability might be stretched further due to its e-commerce expansion. Readers can quickly glance over the chart above, where its adjusted EPS estimates have been revised downwards through FY23 over the last five months. However, we believe that if you are a long-term investor with a five-year horizon at least, it's not a cause for concern. Earlier investors in Sea Limited can keenly recall the company's massive adjusted EBITDA per order losses, as seen in the previous chart. Shopee has scaled tremendously over the last five years and has improved its operating leverage further. But, it's important to note that it takes time to scale up. Therefore, earlier losses in new geographical markets are expected. But, management has demonstrated its execution capability over the last three years. Considering its much reduced adjusted EBITDA losses over the previous few years, we believe that Shopee is even better positioned than before to navigate its expansion.</p>\n<p><b>So, is SE Stock a Buy Now?</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3dbc835e49ded8a7a0e5f4fcc9e10649\" tg-width=\"640\" tg-height=\"384\" referrerpolicy=\"no-referrer\"><span>SE stock EV/NTM Revenue 4Y mean.</span></p>\n<p>SE stock is trading at an EV/NTM Revenue of 8.3x. Therefore, it has brought it back to its 4Y NTM revenue multiple mean of 8.6x. We believe there's a fantastic opportunity right now as the market has undoubtedly overreacted. As demonstrated clearly, SE is still expected to generate massive revenue growth moving ahead, even though it means the road to profitability gets further extended.</p>\n<p>Considering its FY23 revenue estimate, SE stock is trading at just 5.8x FY23 revenue. No one can accurately predict where the stock will be headed over the next few months. But, we think it represents a tremendous opportunity right now.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3bea18a0bdfd970ea640308dc35e099c\" tg-width=\"635\" tg-height=\"362\" referrerpolicy=\"no-referrer\"><span>SE stock price target Vs. actual price trend. Source: Seeking Alpha</span></p>\n<p>Moreover, readers can observe that the valuation gap between SE stock's consensus price target (PT) of $405.87 and its current price has never been more significant in a while. It's even more pronounced than its last significant correction in April/May. Notably, the consensus price target has been revised upwards despite the so-called \"gaming headwinds.\" And, if you look at the price chart, SE stock price has followed the revised PT trend very consistently over time. Therefore, the current price could be one of the most significant discounts you could observe in a long time.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/939a544ab94c9e2a2b8a6db943703b39\" tg-width=\"910\" tg-height=\"602\" referrerpolicy=\"no-referrer\"><span>SE stock DCF valuation model. Data source: S&P Capital IQ, company filings, author</span></p>\n<p>Our DCF model also shows that SE stock is now significantly undervalued with an implied fair value of $371.46. We have also used reasonable estimates in our model. Moreover, we believe that SE will continue to gain significant operating leverage as it scales in the new markets. We estimate that its adjusted EBITDA margins could reach 15% by FY25.</p>\n<p>Lastly, the stock is also testing a critical support level that has strongly underpinned the stock's advance since early 2021. Therefore, there are sufficient reasons to believe that the current entry point to add exposure to SE stock seems very attractive now.</p>\n<p>Consequently,<i>we revise our rating on SE stock to Strong Buy</i>.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Stock: Down 43% From Its High, is a Buy Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Stock: Down 43% From Its High, is a Buy Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-20 11:55 GMT+8 <a href=https://seekingalpha.com/article/4475931-sea-se-down-significantly-stock-strong-buy><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nSea Limited stock has been battered recently as growth stocks sold off massively in the market.\nHowever, we believe that the fundamental thesis on its rapid growth remains robust.\nWe discuss ...</p>\n\n<a href=\"https://seekingalpha.com/article/4475931-sea-se-down-significantly-stock-strong-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://seekingalpha.com/article/4475931-sea-se-down-significantly-stock-strong-buy","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1109541249","content_text":"Summary\n\nSea Limited stock has been battered recently as growth stocks sold off massively in the market.\nHowever, we believe that the fundamental thesis on its rapid growth remains robust.\nWe discuss why investors should capitalize on its recent significant correction to add exposure.\n\nkokkai/iStock Unreleased via Getty Images\nInvestment Thesis\nSea Limited(NYSE:SE) stock is one of our highest conviction growth stocks that has been severely battered over the last month. Since its recent all-time high (ATH) in October, its price has dropped by a dramatic 43%. Many reasons have been presented on why the stock has fallen. We exhort investors not to read too much into them. We believe nothing material has changed from its fundamental thesis. The stock has had a remarkable run in 2021 relative to its gaming peers or e-tailer peers. Therefore, profit-taking of this extent should not be surprising as fear struck growth stocks.\nMoreover, the recent significant correction in growth stocks across the market has also hit SE stock hard. But, we are not concerned. Significant volatility will always be a factor influencing the performance of growth stocks like SE in the short term.\nNotably, we observed that the consensus target price on SE stock had been revised upwards since its FQ3 report card. Moreover, the gap between its price target and its current stock price has been greater than its last significant correction in April/May.\nOur internal DCF valuation model also points to a stock that is now significantly undervalued. Thanks to the market's myopia, we have been presented with another fantastic opportunity since April/May to add SE stock with great fervor again.\nWe discuss why we think investors should not miss this incredible opportunity to add exposure to an outstanding growth stock.\nSE Stock YTD Performance\nSE stock YTD performance (as of 17 December'21).\nAs a result of the significant correction recently, SE stock's YTD return has dropped to 6.9%, thus underperforming the market. Notably, its YTD gain was as high as 80% in October/early November. Despite that, the stock is still outperforming its e-tailer and gaming peers, as shown above.\nSea Stock Estimates Have Consistently Been Revised Upwards\nSea Limited revised revenue mean consensus estimates. Data source: S&P Capital IQ, Seeking Alpha\nReaders can quickly observe that the company's revenue consensus estimates for FY21-23 have consistently been revised upwards over the last five months. These revisions lend credence to the robust growth prospects of the company over the next two years. Notably, Sea Limited's revenue is estimated to increase at a phenomenal CAGR of 42.8% through FY23.\nThere were concerns over the growth rates of its Garena gaming arm in its FQ3 report card.We also explained in our previous article that Sea Limited has clearly explained that investors should expect normalization in Garena's growth after two spectacular years. However, its monetization capability continues to dazzle. Therefore, we are confident that Garena can continue its robust monetization strategies moving forward.\nMoreover, data from Sensor Tower's recent gaming statistics continue to point to sturdy performance from its Free Fire game. It continues to be ranked among the top ten mobile games in terms of overall gaming revenue in November. Moreover, it's also ranked#2 in overall downloadsacross both the App Store and Google Play. Notably, it's also among eight games globally whose annual revenue crossed $1B as of 14 December. Therefore, we think the sentiments and chatter about Free Fire's \"one-shot wonder\" have been overblown.\nGlobal games market forecast. Source: Google, Newzoo\nIn addition, the global gaming market is estimated to experience a slight decline to $175.8B after last year's massive 23% growth to $177.8B. However, given Garena's impressive growth in FY21 despite the decline in the global market, we believe it validates its business model and prospects. Notably, the gaming market is expected to reverse its decline moving forward. Therefore, Garena's leadership in mobile gaming could continue to propel its growth underpinned by the recovery in the global gaming market.\nShopee adjusted EBITDA per order. Data source: Company filings\nBut, some investors may have been spooked by Shopee's (Sea Limited's e-commerce arm) continued expansion into new geographical markets. Notably, Shopee continues to report adjusted EBITDA loss per order, as shown above. Therefore, some investors might have been concerned about whether the company's plate is getting too much to handle. Over the last three months, the company has entered into new markets such as India, France, Spain, and Poland. They are in addition to its battle with MercadoLibre (MELI) in Latin America, particularly Brazil. As a result, there are concerns on whether Sea Limited could continue its adroit execution in these markets while still making losses. We believe such concerns are valid. However, Sea Limited has shown its tremendous capability in penetrating the most important markets where the incumbents have strong leadership. It includes Lazada (BABA) in Southeast Asia, MercadoLibre in Brazil, and Tokopedia in Indonesia. Shopee was never the first-mover. But, it took advantage as the \"late-comer\" as it sought to compete with the incumbents. It's important to note that Sea Limited is not averse to competition. It has thrived against the incumbents and has made the e-commerce space in these geographical regions much more competitive.\nSea Limited revised adjusted EPS mean consensus estimates. Data source: S&P Capital IQ, Seeking Alpha\nNevertheless, the road towards profitability might be stretched further due to its e-commerce expansion. Readers can quickly glance over the chart above, where its adjusted EPS estimates have been revised downwards through FY23 over the last five months. However, we believe that if you are a long-term investor with a five-year horizon at least, it's not a cause for concern. Earlier investors in Sea Limited can keenly recall the company's massive adjusted EBITDA per order losses, as seen in the previous chart. Shopee has scaled tremendously over the last five years and has improved its operating leverage further. But, it's important to note that it takes time to scale up. Therefore, earlier losses in new geographical markets are expected. But, management has demonstrated its execution capability over the last three years. Considering its much reduced adjusted EBITDA losses over the previous few years, we believe that Shopee is even better positioned than before to navigate its expansion.\nSo, is SE Stock a Buy Now?\nSE stock EV/NTM Revenue 4Y mean.\nSE stock is trading at an EV/NTM Revenue of 8.3x. Therefore, it has brought it back to its 4Y NTM revenue multiple mean of 8.6x. We believe there's a fantastic opportunity right now as the market has undoubtedly overreacted. As demonstrated clearly, SE is still expected to generate massive revenue growth moving ahead, even though it means the road to profitability gets further extended.\nConsidering its FY23 revenue estimate, SE stock is trading at just 5.8x FY23 revenue. No one can accurately predict where the stock will be headed over the next few months. But, we think it represents a tremendous opportunity right now.\nSE stock price target Vs. actual price trend. Source: Seeking Alpha\nMoreover, readers can observe that the valuation gap between SE stock's consensus price target (PT) of $405.87 and its current price has never been more significant in a while. It's even more pronounced than its last significant correction in April/May. Notably, the consensus price target has been revised upwards despite the so-called \"gaming headwinds.\" And, if you look at the price chart, SE stock price has followed the revised PT trend very consistently over time. Therefore, the current price could be one of the most significant discounts you could observe in a long time.\nSE stock DCF valuation model. Data source: S&P Capital IQ, company filings, author\nOur DCF model also shows that SE stock is now significantly undervalued with an implied fair value of $371.46. We have also used reasonable estimates in our model. Moreover, we believe that SE will continue to gain significant operating leverage as it scales in the new markets. We estimate that its adjusted EBITDA margins could reach 15% by FY25.\nLastly, the stock is also testing a critical support level that has strongly underpinned the stock's advance since early 2021. Therefore, there are sufficient reasons to believe that the current entry point to add exposure to SE stock seems very attractive now.\nConsequently,we revise our rating on SE stock to Strong Buy.","news_type":1},"isVote":1,"tweetType":1,"viewCount":526,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0}],"lives":[]}
