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SE (Sea Limited) has long been a growth stock favorite. But here we have a richly valued, unprofitable company in the wrong place at the wrong time. So much so that Hedgeye just released SE as it's Best Idea Short...

Hedgeye Lists SE (Sea Limited) as Best Short Idea

Hedgeye Lists SE (Sea Limited) as Best Short Idea

I've seen a handful of other prominent traders pointing at SE as a ripe short opportunity. While I love to see this kind of revenue growth...

SE (Sea Limited) table current and projected revenue.

SE (Sea Limited) table current and projected revenue.

The market really hates these kinds of losses right now...

SE (Sea Limited) table showing current and projected net income.

SE (Sea Limited) table showing current and projected net income.

But if you have hands to hold, a long enough time horizon, and SE executes, you could get this by 2024...

SE (Sea Limited) net income table showing 2024 projected positive income.

SE (Sea Limited) net income table showing 2024 projected positive income.

If those numbers end up being accurate the market will price it in a year or two before it actually occurs. So potentially, all things remaining static, late next year. 

But today, December 10th, the market doesn't like the uncertainty of future revenues with the prospect of inflation (justified or not) on everyone's mind.

That's really all there is to the recent price collapse in SE, in my opinion. Per the most recent earnings, the business is doing and executing exactly like it said it would.