Sea Limited's 0.37% Drop, $620M Volume (155th) as E-commerce and Fintech Surge Offset EPS Shortfall

On August 14, 2025, Sea Limited (NYSE:SE) closed at a 0.37% decline, with a trading volume of $620 million, ranking 155th among stocks in terms of liquidity. The stock’s performance followed mixed earnings results released earlier in the week, highlighting divergent performance across its core segments.

The company reported Q2 2025 revenue of $5.26 billion, a 38% year-over-year increase driven by its e-commerce and digital entertainment divisions. Shopee’s revenue rose 33.7% to $3.8 billion, while Garena’s digital entertainment segment grew 28.4% to $559.1 million. However, earnings per share (EPS) fell short of estimates, reporting $0.69 compared to the expected $0.99, attributed to margin pressures from competitive costs and logistics expenses.

The digital financial services segment emerged as a standout contributor, with revenue surging 70% year-over-year to $882.8 million. This growth was fueled by a 94% increase in consumer and SME loans outstanding to $6.9 billion, while the non-performing loan ratio remained stable at 1.0%. The company also raised full-year guidance for Garena, citing continued momentum from "Free Fire" and plans to leverage AI in gaming innovation.

Despite the revenue beat, market reaction remained cautious. Shares initially surged 18% post-earnings but have since retraced, reflecting investor concerns about translating top-line growth into consistent profitability. Analysts noted that while Sea’s expansion in e-commerce and fintech is robust, sustaining margins in highly competitive markets remains a challenge.

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