The company is strongly positioned in the gaming, e-commerce, and fintech markets
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Sea Ltd (NYSE:SE) stock presents a compelling bullish case for 2025, thanks to its strong positions in gaming, e-commerce, and fintech across emerging markets. The company has seen impressive growth in its gaming business, with Free Fire's revenue expected to grow by over 30% year-over-year in 2024.
From a technical perspective, Sea stock recently broke out of a large stage one weekly base pattern, transitioning into a stage two uptrend as we head into 2025. Investors should view any pullback to the round $100 and $90 support zone as a buying opportunity. A move above the $125-130 resistance level could send prices back to the $200 pivot level from 2021,signaling further upside.
The short interest percentage of the float is relatively low at 4.09%, but short interest has increased by 303% in 2024 since the December 2023 lows, coinciding with the stock's nearly 200% year-to-date rise. This could lead to an unwinding of shorts in 2025, providing additional momentum for the stock.
On the options front, we are seeing deep in-the-money (ITM) put sellers at the December 2025 and January 2026 130-strike puts, with large traders expecting the share price to be above this level by year-end.