Motley Fool Canada aims to cater to the everyday Canadian. Because not all Canadians like to invest in foreign companies, we tend to stick to Canadian stocks for Motley Fool Canada articles. However, it’s very important for investors to diversify their portfolios. This includes considering geographic diversification. Because of this, we sometimes get the green light to discuss stocks that trade in the United States.
In this article, I’ll discuss one stock trading on the NYSE that could make you a millionaire.
An introduction to a great stock
Of all the non-Canadian stocks available, no company interests me more than Sea Limited (NYSE:SE). Although it trades on an American stock exchange, Sea Limited is actually a Singapore-based company. For those that are unfamiliar, Sea Limited’s name and logo pay homage to southeast Asia (SEA), the region where it originally focused its operations.
It operates three distinct business lines that I believe make it a must-have in your portfolio. These are Garena, Shopee, and SeaMoney. All three business lines operate in emerging areas of the economy. With Sea Limited getting a jump in these important industries, it sets itself up for success in the long run.
A deeper look into its business
When Sea Limited was initially founded in 2009, it was known as Garena. Now a subsidiary of Sea Limited, Garena focuses on digital entertainment. It develops and publishes free online games. Its most notable game is Free Fire, a mobile battle royale game. Free Fire made headlines in August 2021 when it set a record of more than 150 million daily active users. As of last year, the game had grossed more than US$4 billion worldwide.
In 2021, Free Fire introduced the Free Fire World Series, giving it an entry into the esports world. In 2021, it’s estimated that there were more than 460 million esports viewers worldwide, with nearly half of those being esports enthusiasts. As this industry continues to grow, tournaments and revenue opportunities should grow alongside it. By using Garena as a way of entering this important new industry, Sea Limited puts its foot in the door to find success.
Sea Limited’s next most prominent business line is Shopee. This is recognized as the largest ecommerce platform in southeast Asia, with more than 343 million monthly visitors. A household name in its native region, Shopee has slowly expanded into different regions of the world. Today, it also operates in countries in North and South America and Europe. Shopee is the reason I started investing in Sea Limited, and with it having a larger presence today than ever before, it’s hard to stay away from this stock.
Motley Fool readers familiar with my work will know about my bullishness towards the ecommerce industry. It’s estimated that the global ecommerce industry could grow to a size of US$27 trillion by 2027. If that happens, it would represent a compound annual growth rate (CAGR) of nearly 15% from 2020 to 2027.
Finally, SeaMoney represents the company’s final business segment. This arm of Sea Limited’s business provides digital payment and financial services in southeast Asia. If I had to describe what SeaMoney does, it would be similar to combining the functions of an Apple Wallet and PayPal. Digital payments are becoming more popular, and SeaMoney gives Sea Limited an opportunity to grow alongside the industry.
Sea Limited is an outstanding company with tons of potential. In Q1 2022, the company reported a year-over-year increase of 64.4% in its quarterly revenue. Its profit exhibited a year-over-year increase of 81.3% over the same period. Despite these strong performances, Sea Limited stock trades nearly 80% lower than it’s all-time highs. Notably, the stock has jumped about 50% higher than its 52-week lows, which were posted in May 2022. Now’s the time for investors to jump into this generational growth opportunity.