Why Did Sea Plunge 6.71% Despite Strong Earnings?

On April 3, 2025, Sea's stock price dropped by 6.71% in pre-market trading, reflecting a significant decline in investor sentiment.

Loop Capital recently raised its price target for Sea Limited from $135.00 to $165.00, maintaining a "buy" rating. This move indicates a positive outlook on the company's future performance, potentially driving investor confidence.

Sea Limited's intrinsic value is estimated to be 44% higher than its current share price, suggesting that the stock may be undervalued. This valuation is based on a 2 Stage Free Cash Flow to Equity model, which considers the company's financial health and growth prospects.

Sea Limited has shown strong earnings growth, with a 194.8% increase over the past year. This robust performance is expected to continue, with earnings forecasted to grow by 32% annually. Such growth prospects can attract investors looking for high-potential stocks.

Sea Limited has also demonstrated a healthy balance sheet, with a 93% increase in EBIT, which reduces the risk of future debt repayments. This financial stability can provide reassurance to investors concerned about the company's long-term sustainability.