Sea's latest results showed the cost of broadening beyond online retail: revenue rose 43%, while adjusted EBITDA trailed analysts' expectations as the Singapore-based group invested in AI and new businesses.
Sea is the Singapore-based parent of e-commerce platform Shopee, gaming business Garena and financial-services arm Monee. The company said Nov. 10 that adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 29% to $931 million for the three months to September, Bloomberg reported. Bloomberg-compiled data put the average analyst estimate at $990 million. Revenue reached $8.6 billion, above forecasts, Bloomberg reported.
Shopee generated $6.1 billion in revenue, while its adjusted EBITDA climbed 45% to $269.2 million, Bloomberg reported. Sea is adding AI features to its products and investing in cloud computing and food delivery, according to Bloomberg. The outlet reported that investors are watching whether competition from TikTok Shop, Lazada and Shein will constrain Shopee's pricing and profitability.
Sea shares fell 1.5% after the results, reversing an earlier rise, Bloomberg reported. The stock had dropped 40% in 2026 amid higher oil prices and competition, the outlet said.
Sea said its board authorized an additional $1 billion in stock repurchases after the company completed a similar amount under a previous program, Bloomberg reported. On a Nov. 10 earnings call, Sea CEO Forrest Li said the company wants cloud customers to help cover infrastructure costs while limiting how much equipment it owns directly.
Bloomberg Intelligence analysts, including Lea El-Hage, said Sea would need to pay for chips and storage before its cloud business could become profitable. They said the upfront costs could also make it difficult to match established providers such as Amazon Web Services. El-Hage said a potential public listing for Monee might give the financial-services arm its own source of capital while its margins remain vulnerable, Bloomberg reported.
Bloomberg reported that Sea is pursuing Shopee growth in Brazil and facing possible regulatory obstacles in Indonesia.
