Sea Limited's growth investments pressure margins but boost revenue and offer strong upside potential.

Sea Limited is focusing on growth investments in FY2026, which have caused a decline in adjusted EBITDA margins but driven strong revenue, GMV, and booking growth. Its fintech segment, Monee, benefits from increased cross-selling and expansion in Brazil, while Garena shows rising bookings at higher ARPUs, supporting diverse growth prospects. Despite near-term macro uncertainties, the stock trades at a discounted P/E of 21.83x and a 3-year PEG of 0.76x, suggesting more than double upside potential to a long-term price target of $180.40. The company’s stronger balance sheet and oversold technical indicators make it an attractive buy at current levels around the $80s.