Will Sea Limited Hit a $1 Trillion Market Cap?
What’s your favorite mega-cap stock? One company that jumps to mind is Sea Limited (NYSE:SE). The stock has been on a rampage, running up almost 1,000% in two years. While you might see that sort of amazing growth in a micro cap or a small cap, for a large company to pull it off is really special.
Sea is going after huge market verticals (video gaming, internet commerce, and digital payments), and it can easily hit a trillion market cap before the decade is over. In this episode of “Beat and Raise,” Motley Fool Brian Withers and Taylor Carmichael discuss Sea. This clip was recorded on Sept 2.
Brian Withers: So Taylor, you’re bringing an e-commerce giant. Who are you talking about here?
Taylor Carmichael: It’s a mega cap. I’m usually the small-cap guy, so me and Lou switch places, I guess. I’m talking about Sea. I don’t call them Sea Limited, I call them Sea Unlimited. I don’t like that limited part.
Brian Withers: [laughs] That’s awesome.
Taylor Carmichael: Sea is this monster out in Southeast Asia, and they started in Singapore and Taiwan and Vietnam. See if I remember them all, Thailand and everything but China, Japan, and Korea basically. All these little countries that you think of as little countries, Malaysia is another one. There are seven of them. All of these islands and small countries, it’s about the same size of population as North America, so it’s just this huge market on the other side of the world. My family bought Sea a couple of years ago, two, three years ago, at $30 a share. It’s now $330 a share. It’s three businesses in one. It is the Amazon (NASDAQ:AMZN) of Southeast Asia with their Shopee division. They have three basic businesses. Their first one was called Garena, which is short for gaming arena. They created games for smartphones, so they’re like Activision Blizzard or like any video game company in that sense, except they specialize in mobile games. They’re not really doing games for the Xbox or doing games for Sony (NYSE: SONY). They’re doing games for your cellphone, and they’ve designed their games for the smartphones. Unlike the video gaming companies in the U.S., Sea was started, I think, in 2009 or 2008. They basically were started after Apple invented the iPhone and introduced the iPhone. They were really first mover, I guess. They will be the equivalent of Epic Games. They have what’s the No. 1 game in the world. It’s called, it’s not Fortnite …
Brian Withers: Free Fire.
Taylor Carmichael: Free Fire. Thank you, sir. It’s a lot like Fortnite, actually. It’s a battle royale game and extremely popular in the world. It’s the No. 1 downloaded game on App Annie, for a year or two, it’s just been a huge hit. They lead with that game, and they have other games. They get a game from Activision Blizzard, I think. They get games from other third parties, but that’s their main game that they created in-house. It’s…