1 eCommerce Stock Now! (Better than Shopify!?)

Today we will be talking about a new stock that just popped up on my radar that I actually like a lot. And if you read the title of this video, you can see that I like this stock enough to joke about selling my Shopify stock in order to buy it. And while I won’t be selling my Shopify Stock anytime soon since it is my number one stock. The fact that I would put shopify and this stock in the same category shows you what I think about this stock. The stock I am talking about is Sea Stock, ticker symbol SE. Se stock is up 28% over the past month, 370% over the past year, and a whopping 838% over the past 3 years. So this is definitely a high growth stock that has vastly outperformed the market over the past 3 years. Sea, which is spelled S-E-A operates 3 different businesses but the biggest and most compelling in my opinion is their Ecommerce platform called Shopee.

Before I get into Sea stock, I want to talk about how big of an opportunity ecommerce is right now for investors. Amazon is continuing to grow tremendously but other companies like shopify are starting to catch up. And newcomers to this space are also starting to see tremendous growth. Big commerce, a stock I just made a video about, recently ipoed earlier this month and has already increased its share price substantially. In fact, in the past 4 days alone Big commerce has run up 115%. And that is because they just recently announced a partnership with instagram. This partnership allows merchants with Big commerce accounts to sell products directly on instagram using the “checkout on instagram” feature. So if you don’t know about big commerce stock, now might be a good time to jump in because I do think the price momentum will continue over the short term. Also I think Big commerce stock has plenty of long term upside since its market cap is only 8 billion dollars. Now when it comes to ecommerce, there are many different strategies. If you watched my last video comparing Big commerce to shopify, you would know that social media is going to be a huge growth driver for individual brands selling products online. So if you haven’t watched that video and you would like to, I will put a card up in the corner for you. But Shopee is different from ecommerce stocks like shopify and big Commerce in 2 big ways. One, they are targeting the southeast asian markets instead of the US markets and two their business model is more similar to that of alibaba and amazon instead of shopify and big commerce. I like Shopee because they are expanding into geographical areas that have lower levels of ecommerce usage and therefore higher potential growth rates. And their market cap is only 75 billion dollars compared to alibaba and amazon which are both multi trillion dollar stocks. So this is a company that has shown the ability to execute and I believe that they will continue to grow for the foreseeable future. Also I don’t have much international exposure in my portfolio so I think this is a good stock to add some geographical diversity to my portfolio. One of the reasons that I don’t have much international exposure is because I don’t really trust chinese stocks since the government over there can come up with their own rules and potentially mislead investors. So I like that shopee is targeting a different market other than the US and that it is not a chinese company.

So here is some basic background knowledge on Sea stock for those of you who are unfamiliar with the company. Like I said earlier shopee has three different segments to its business. It has its ecommerce platform, shopee, then it also has it’s egaming platform, Garena, and it’s financial services or Fintech platform, Seamoney. What I like about Sea’s business model is that it encompasses three areas of high growth. Not only does it have the ecommerce aspect but it also is expanding into fintech and mobile game development. Square and paypal, which are two US fintech companies are seeing huge growth right now due to the coronavirus pandemic, which is leading more people to use contactless payment platforms over brick and mortar banks. Also mobile gaming is experiencing huge growth right now. Fortnite, one of the most popular mobile games in history has 350 million players and made 1.8 billion in revenue in 2019. So, I really like the trifecta of business segments that Sea has as they are businesses that I already invest heavily into at the moment.

Sea Stock 2019 Results: https://cdngarenanow-a.akamaihd.net/webmain/static/resource/seagroup/press/2020-03-03%20Sea%20Fourth%20Quarter%20and%20Full%20Year%202019%20Results%20Deck%20.pdf