Equity Research Analyst - Long-Short

Raj S, CA, CFA

Equity Bottom-Up

<ul>
<li>Sea Ltd’s current margin pressure is investment-driven, not price-war driven, with logistics expansion and loyalty programs weighing short-term but strengthening long-term platform economics.</li>
<li>Shopee monetization remains intact with scaling ads and stable take-rates, while Gaming and DFS provide stable earnings and growth support, reducing reliance on near-term e-commerce margin recovery.</li>
<li>At ~0.8x forward sales for Shopee, valuation is depressed; normalization toward 2.0x–2.8x supports ~60% base-case and ~90% upside potential.</li>
</ul>


Sea Ltd’s current margin pressure is investment-driven, not price-war driven, with logistics expansion and loyalty programs weighing short-term but strengthening long-term platform economics.
Shopee monetization remains intact with scaling ads and stable take-rates, while Gaming and DFS provide stable earnings and growth support, reducing reliance on near-term e-commerce margin recovery.
At ~0.8x forward sales for Shopee, valuation is depressed; normalization toward 2.0x–2.8x supports ~60% base-case and ~90% upside potential.


Sea Ltd (SE US): Shopee Trading at Trough Valuations

Podcast by Dom Cooke to explore big businesses, Business Breakdowns

Business Breakdowns

Podcast by Dom Cooke to explore big businesses

Learn how companies work from the people who know them best. We do deep research and interview industry veterans, investment professionals, and corporate executives to explain the inner workings of public stocks and private businesses. For each company, we break down their history, business model, financial statements, secret sauce, and bull/bear case. We believe every business has lessons to teach us and Breakdowns is here to highlight them. Learn more and stay up to date at www.joincolossus.com.

<ul><li>Daniel Wu of BristolMoon Capital discusses Mercado Libre, a company that has evolved from being the "eBay of Latam" to a major e-commerce and fintech player in Latin America.</li><li>Mercado Libre is described as an amalgamation of Amazon Retail and Alipay, with a dominant market share in e-commerce in countries like Brazil, Mexico, and Argentina.</li><li>Founded in 1999 in Buenos Aires by Marcos Galperin and co-founders, Mercado Libre differentiated itself by focusing on sustainable growth strategies instead of chasing rapid user acquisition, allowing it to thrive through economic downturns and emerge as a major player in the region.</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Daniel Wu of BristolMoon Capital discusses Mercado Libre, a company that has evolved from being the "eBay of Latam" to a major e-commerce and fintech player in Latin America.Mercado Libre is described as an amalgamation of Amazon Retail and Alipay, with a dominant market share in e-commerce in countries like Brazil, Mexico, and Argentina.Founded in 1999 in Buenos Aires by Marcos Galperin and co-founders, Mercado Libre differentiated itself by focusing on sustainable growth strategies instead of chasing rapid user acquisition, allowing it to thrive through economic downturns and emerge as a major player in the region.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Mercado Libre: E-commerce Empire - [Business Breakdowns, EP.227]

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
Context:<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a> reported Q1 results on 29 Aug. Despite a revenue miss, strong cloud growth and its AI chip announcement drove the stock up double digits.</li>
<li>
Highlight: Implied volatility deflated sharply post-earnings, with the September contract down 8.5% and back months also lower, while skew shifted down in parallel.</li>
<li>
Why it matters: Put the current volatility surface into context. This insight can serve as a case study of how earnings-driven repricing can inform positioning ahead of future events.</li>
</ul>



Context:Alibaba (9988 HK) reported Q1 results on 29 Aug. Despite a revenue miss, strong cloud growth and its AI chip announcement drove the stock up double digits.

Highlight: Implied volatility deflated sharply post-earnings, with the September contract down 8.5% and back months also lower, while skew shifted down in parallel.

Why it matters: Put the current volatility surface into context. This insight can serve as a case study of how earnings-driven repricing can inform positioning ahead of future events.


Alibaba (9988 HK): Stock Surges Post-Earnings, Options Market Reprices

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK</a>/ <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">BABA US)</a>will announce quarterly results on Friday, August 29, 7:30 p.m. Hong Kong Time. The timing is crucial for options expiries in HK and the US.</li>
<li>
Highlight: The options market provides estimates for the anticipated price move. Implied volatility is projected to decline post-event; this Insight maps the resulting term structure.</li>
<li>
Why Read: Get the expected move and a view of the post-event volatility term structure.</li>
</ul>



Alibaba (9988 HK/ BABA US)will announce quarterly results on Friday, August 29, 7:30 p.m. Hong Kong Time. The timing is crucial for options expiries in HK and the US.

Highlight: The options market provides estimates for the anticipated price move. Implied volatility is projected to decline post-event; this Insight maps the resulting term structure.

Why Read: Get the expected move and a view of the post-event volatility term structure.


Alibaba (9988 HK): Expected Earnings-Day Swings and Options Market View

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a> will announce quarterly results on Friday, August 29, 7:30 p.m. Hong Kong Time.  In the lead-up, options strategies on the Hong Kong Exchange showcase a variety of approaches.</li>
<li>
Highlights: Recent option trades show a bias towards bullish sentiment. Two strategies using weekly options expiring soon after the earnings announcement are explored.</li>
<li>
Why Read: This review offers real-market insight into how sophisticated participants are positioning ahead of Tencent’s earnings.</li>
</ul>



Alibaba (9988 HK) will announce quarterly results on Friday, August 29, 7:30 p.m. Hong Kong Time.  In the lead-up, options strategies on the Hong Kong Exchange showcase a variety of approaches.

Highlights: Recent option trades show a bias towards bullish sentiment. Two strategies using weekly options expiring soon after the earnings announcement are explored.

Why Read: This review offers real-market insight into how sophisticated participants are positioning ahead of Tencent’s earnings.


Alibaba (9988 HK): Top Trades Ahead of Earnings

Brazil

MercadoLibre, Inc. operates an online trading site for the Latin American markets. The Company's website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, and real estate, as well as online payment services.

Price Gauge
52-week Range	0.00 - 0.00
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MercadoLibre (MELI US)

Sea Ltd (SE US): Shopee Trading at Trough Valuations

Sea Ltd's margin pressure is due to investment in logistics and loyalty programs, not price wars. Valuation for Shopee will re-rate as this margin...

Raj S, CA, CFA

Mercado Libre: E-commerce Empire - [Business Breakdowns, EP.227]

Mercado Libre, founded in 1999 in Buenos Aires, has become the largest e-commerce platform in Latin America, offering services like Mercado Pago...

Business Breakdowns

Alibaba (9988 HK): Stock Surges Post-Earnings, Options Market Reprices

Alibaba's Q1 results drive stock up 12% despite revenue miss. Implied volatility deflated post-earnings, offering insight for future positioning.

Gaudenz Schneider

Alibaba (9988 HK): Expected Earnings-Day Swings and Options Market View

Alibaba (BABA US // 9988 HK) reports today, 29 Aug pre-open US. US-listed options expiring 29 Aug price a 1-day move of 5.8%, with the ATM...

Gaudenz Schneider

Alibaba (9988 HK): Top Trades Ahead of Earnings

As Alibaba heads into 29 August earnings, option markets reveal activity from near-term spreads to longer-dated positioning. This Insight unpacks...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sea Ltd (SE US): Shopee Trading at Trough Valuations

​Sea Ltd's margin pressure is due to investment in logistics and loyalty programs, not price wars. Valuation for Shopee will re-rate as this margin...

Raj S, CA, CFA

Mercado Libre: E-commerce Empire - [Business Breakdowns, EP.227]

Mercado Libre, founded in 1999 in Buenos Aires, has become the largest e-commerce platform in Latin America, offering services like Mercado Pago...

Business Breakdowns

Alibaba (9988 HK): Stock Surges Post-Earnings, Options Market Reprices

​Alibaba's Q1 results drive stock up 12% despite revenue miss. Implied volatility deflated post-earnings, offering insight for future positioning.

Gaudenz Schneider

Alibaba (9988 HK): Expected Earnings-Day Swings and Options Market View

Alibaba (BABA US // 9988 HK) reports today, 29 Aug pre-open US. US-listed options expiring 29 Aug price a 1-day move of 5.8%, with the ATM...

Gaudenz Schneider

Alibaba (9988 HK): Top Trades Ahead of Earnings

As Alibaba heads into 29 August earnings, option markets reveal activity from near-term spreads to longer-dated positioning. This Insight unpacks...

Gaudenz Schneider

Sea Ltd's margin pressure is due to investment in logistics and loyalty programs, not price wars. Valuation for Shopee will re-rate as this margin...

Alibaba's Q1 results drive stock up 12% despite revenue miss. Implied volatility deflated post-earnings, offering insight for future positioning.