Sea saw its share price rise by 12% over the last week, potentially influenced by broader market trends where the Dow Jones and S&P 500 continued their upward streak, encouraged by strong earnings reports from key companies. Investor sentiment has been buoyed by hopes that the U.S. government's tariff policies may soften, a factor that could broadly impact global players like Sea. Meanwhile, the technology sector maintained a mixed performance with slight gains and losses among major firms. Overall, Sea's stock movement aligns with the general positivity in the market as investors digest corporate earnings and tariff updates.

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The recent 12% rise in Sea's stock price is influenced by market optimism around possible tariff policy changes. This aligns with the recent positive trends in the Dow Jones and S&P 500, as investors remain positive on U.S. government trade policies. Over the last five years, Sea's total shareholder return was very large at 135.89%, demonstrating robust long-term growth. Comparatively, its performance also outpaced its industry over the past year, driven by various growth initiatives.

This news potentially supports Sea's revenue and earnings forecasts, suggesting that a more favorable tariff landscape could bolster its geographic expansion, notably in markets like Brazil. Enhancements in services and the adoption of AI are projected to sustain growth in gross merchandise volume (GMV) and improve profitability. Analysts forecast earnings to grow from US$444.32 million to US$3.1 billion by April 2028, but this is highly dependent on maintaining or improving existing market conditions.

Sea's current share price, at US$118.52, falls significantly below the consensus analyst price target of US$155.36, indicating a notable potential upside of nearly 24%. This opens up conversations about fair value and whether the market has appropriately discounted Sea's projected growth and risk factors. The substantial price discount suggests that should analysts' expectations be met, Sea may achieve further appreciation consistent with its historical return performance.

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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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