I strongly believe that it’s worthwhile for all investors to consider buying shares of companies that operate and trade outside of Canada. This concept of investing internationally is very important, because it allows investors to diversify their portfolios and seek new opportunities that may not exist in Canada. Fortunately, this is possible, as Canadians are able to buy shares of stocks that trade in the U.S. In this article, I’ll discuss one stock trading in the U.S. that could make you a millionaire.
What stock should Canadians buy today?
If I could only buy one international stock, it would be Sea Limited (NYSE:SE). In fact, if I could only buy one stock at all, it may still be this company. Sea Limited accounts for one of the largest positions in my portfolio. The reason I’m so attracted to this company is because it operates in three emerging areas. Sea Limited’s business gives it exposure to the esports, e-commerce, and digital payments industries.
In terms of e-sports, Garena (the segment responsible for this segment of Sea Limited’s business) is one of the most recognized names in the industry. It has sponsored major e-sports tournaments in the past, helping it establish itself as an important name in that market. Garena is also well known for developing and distributing mobile games such as Free Fire. As of the second quarter (Q2) of 2022, Garena is the most downloaded mobile game in the world. Over the past 12 quarters, it has also been the highest-grossing mobile game in southeast Asian and Latin America.
As mentioned previously, Sea Limited is also a bona fide competitor in global e-commerce industry. It provides an online marketplace to consumers in southeast Asia, Europe, and South America via Shopee. Globally, the Shopee app was ranked first in total time spent on the app and second in terms of average monthly active users in the shopping category in Q2 2022.
Finally, Sea Limited operates SeaMoney, its digital wallet and payments solution. Through this business segment, consumers are able to pay for goods and services much like they’d be able to do with PayPal or an Apple wallet.
Is Sea Limited’s business growing?
As a whole, Sea Limited’s business continues to grow at a very impressive rate. In Q2 2022, the company reported US$2.9 billion in total revenue. That represents a 29% increase on the year prior. To further drive the point, Sea Limited has managed to increase its revenue while improving on its profitability. This past quarter, Sea Limited reported US$1.1 billion in gross profit, representing a 17.1% increase over Q2 2021.
Much of that growth has come from its e-commerce business. In Q2 2022, Shopee reported US$1.7 billion in total revenue — a 51.4% year-over-year increase. This growth in its e-commerce segment was driven by a 41.6% year-over-year increase in gross orders. Although at a smaller scale, SeaMoney has also grown at a very impressive rate. In Q2 2022, that business segment reported a 214.4% year-over-year increase in total revenue. A 53.3% year-over-year increase in quarterly active users drove the aforementioned growth in Sea Limited’s digital payments business.
Foolish takeaway
Although Canada offers many excellent stocks, Canadians should try to invest in companies that operate and trade outside of the country. This will allow investors to diversify their portfolios and seek opportunities that may not exist in Canada. In my opinion, Sea Limited is an excellent candidate for a growth investor’s portfolio. I believe it has the potential to make investors millionaires in a decade’s time.
