Sea recently announced its full-year earnings results for 2024, showcasing a significant uplift in both revenue and net income, with revenues rising to USD 16.8 billion and net income jumping to USD 444 million. This robust financial performance likely contributed to Sea's 7% price increase over the last quarter. Amidst a challenging broader market environment marked by a 2.5% decline in recent weeks due to tariff concerns, Sea's results stand out. The market experienced volatility fueled by a broad S&P 500 sell-off and economic uncertainty, leading to declining shares in the technology and financial sectors. Nevertheless, Sea's demonstrated earnings growth, reflected in its increased EPS from the previous year, indicates profitability improvements, potentially attracting investor confidence despite widespread market apprehension. This positive stride highlights Sea's ability to sustain growth, even when other sectors are pressured by global economic uncertainties.

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Over the past five years, Sea Limited has delivered a total return of 168.98%, showcasing its capacity to generate significant long-term value for shareholders. This performance has outpaced both the US Entertainment industry and broader market returns over the last year. Several factors have played into this substantial growth. One major event was the company's strategic decision in January 2023 to potentially sell Phoenix Labs, enabling a stronger focus on its core gaming business. This move likely contributed to a refined corporate strategy.

Another key driver was Sea's impressive revenue trajectory, with annual growth forecasted at 14.5%, surpassing US market expectations. Despite encountering legal challenges in 2023 with class action lawsuits, Sea has managed to maintain investor confidence, partially due to anticipated high earnings growth of 38.2% over the next three years. Furthermore, the appointment of new independent directors in August 2024 may bolster governance, potentially reinforcing the company's growth prospects in the eyes of investors.

• Analyze Sea's fair value against its market price in our detailed valuation report—access it here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:SE.

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