Anthony Di Pizio, The Motley Fool
6 min read
In This Article:
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Amazon became one of the world's most valuable companies by expanding beyond e-commerce into areas like cloud computing.
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Sea Limited operates Southeast Asia's largest e-commerce platform, and it's borrowing some of Amazon's most successful strategies.
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Sea stock could soar by 133% over the next 18 months to reclaim its all-time high, based on its attractive valuation and the company's solid growth.
Amazon (NASDAQ: AMZN) was founded in 1994 to sell books using the internet. Its e-commerce platform now sells hundreds of millions of different products, and the company has expanded into other lucrative industries like cloud computing and digital advertising.
Amazon stock has soared by 850% over the last 10 years on the back of significant growth in the company's financial results, catapulting it to a $2.2 trillion market capitalization. But if you missed out on this incredible run, I have some good news: There might be another e-commerce company with significant growth potential, and it's currently worth just $90 billion.
Sea Limited (NYSE: SE) operates Southeast Asia's most dominant e-commerce platform, but the company is also a global leader in mobile gaming, and its digital financial services segment is growing at a lightning-fast pace right now.
Sea stock has soared by more than 102% over the past year, and here's why I think it could soar by another 133% from its closing price on June 23 ($153.52).
Sea's e-commerce platform is called Shopee, and it processed 3.1 billion orders worth $28.6 billion during the first quarter of 2025 (ended March 31) alone. Shopee is focusing on many of the same things that made Amazon.com so successful, like offering ultra-low prices and rapid delivery.
Shopee also launched VIP memberships recently, which offer free delivery and priority service for a small monthly subscription fee. It's a similar program to Amazon Prime, and Sea says that over 1 million customers had already signed up as of the end of March.
Sea is also supercharging Shopee's growth by investing in synergies like financial services. The company's Monee platform (formerly called SeaMoney) lends money to merchants on Shopee to help them grow their businesses, and it also offers buy now, pay later loans to boost customers' buying power. Monee's loan book hit an all-time high of $5.8 billion in Q1, which was a whopping 76.5% increase from the year-ago period.