Sea Q1 Earnings Preview: Fantastic Dip To Buy As Valuation Falls

I'm upgrading Sea to a strong buy rating after the stock's recent rout has vaulted the stock to a bargain 11x forward-adjusted EBITDA label. SE's Shopee faces market skepticism due to 2026 guidance: ~25% GMV growth but adjusted EBITDA only matching 2025 levels, implying margin compression. Rival Lazada (part of the Alibaba Group) appears to be focused on profitability, diminishing concerns of a retail race to the bottom.