VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Thursday, January 8, 2026
Sea Limited
SE · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Sea Limited operates three core consumer internet platforms: Shopee (e-commerce), SeaMoney (digital financial services), and Garena (digital entertainment). Shopee moat is a two-sided marketplace flywheel plus improving logistics/fulfillment capabilities, but competition from large regional and global platforms constrains pricing. SeaMoney leverages embedded distribution from Shopee and operates behind licensing/compliance regimes; upside depends on scaling payments and credit with disciplined risk management. Garena benefits from social network effects and content relationships, but gaming is hit-driven and exposed to regulatory and platform-policy risk.
Primary segment
Shopee (E-commerce)
Market structure
Oligopoly
Market share
52% (reported)
HHI: —
Coverage
3 segments · 5 tags
Updated 2026-01-06
Segments
Shopee (E-commerce)
E-commerce marketplace and related value-added services
Revenue
73.8%
Structure
Oligopoly
Pricing
moderate
Share
52% (reported)
Peers
SeaMoney (Digital Financial Services)
Digital wallets, payments, and consumer/SME credit products
Revenue
14.1%
Structure
Competitive
Pricing
weak
Share
—
Peers
Garena (Digital Entertainment)
Mobile and online games publishing and development (freemium)
Revenue
11.4%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Moat Claims
Shopee (E-commerce)
E-commerce marketplace and related value-added services
Revenue_share computed from FY2024 segment revenue disclosed in Sea's Q4/FY2024 results (SEC Exhibit 99.1): E-commerce US$12.415B of total US$16.820B. Source: https://www.sec.gov/Archives/edgar/data/1703399/000165495425002848/a6kexhibit991.htm
Two Sided Network
Network
Two Sided Network
Strength
Durability
Confidence
Evidence
Marketplace scale benefits from buyer/seller feedback loops that increase selection and transaction density.
Erosion risks
- Seller and buyer multi-homing
- Aggressive competition from TikTok Shop and Temu
- Regulatory changes to marketplace liability
Leading indicators
- Southeast Asia platform GMV share trend
- Repeat purchase frequency / order density
- Seller count growth and churn
Counterarguments
- Network effects in e-commerce are weaker because sellers can list on multiple platforms.
- Discovery-driven social commerce can shift demand without incumbents' buyer/seller density.
Distribution Control
Supply
Distribution Control
Strength
Durability
Confidence
Evidence
Operating and expanding logistics/fulfillment can improve delivery reliability and unit economics vs a pure marketplace model.
Erosion risks
- Logistics cost inflation (labor, fuel)
- Service quality issues reduce trust
- 3PL commoditization of delivery speed
Leading indicators
- Logistics cost per order
- On-time delivery rate and complaints
- Capex or opex allocated to logistics buildout
Counterarguments
- Independent 3PL networks may neutralize delivery differentiation.
- Logistics investments can depress margins if demand slows.
SeaMoney (Digital Financial Services)
Digital wallets, payments, and consumer/SME credit products
Revenue_share computed from FY2024 segment revenue disclosed in Sea's Q4/FY2024 results (SEC Exhibit 99.1): DFS US$2.368B of total US$16.820B. Source: https://www.sec.gov/Archives/edgar/data/1703399/000165495425002848/a6kexhibit991.htm
Ecosystem Complements
Network
Ecosystem Complements
Strength
Durability
Confidence
Evidence
Embedded distribution inside Shopee (and other Sea surfaces) lowers CAC and expands payment/credit use-cases.
Erosion risks
- Competitors can subsidize acquisition via super-app ecosystems
- Merchant/consumer multi-wallet behavior
- Regulatory constraints on bundling or cross-selling
Leading indicators
- Wallet active users and TPV growth
- Attach rate of SeaMoney products on Shopee checkout
- Credit loss rates vs growth
Counterarguments
- Wallet users often hold multiple wallets; embedded distribution is not exclusive.
- Big-tech and local super-apps can match distribution advantages.
Regulated Standards Pipe
Legal
Regulated Standards Pipe
Strength
Durability
Confidence
Evidence
Payments/lending/banking/insurtech require licenses and compliance; this raises fixed costs and slows fast followers.
Erosion risks
- Regulatory tightening (rate caps, underwriting rules)
- License revocation or compliance failures
- Higher capital requirements reduce growth
Leading indicators
- Regulatory actions and new licensing regimes in key markets
- Changes to rate caps/fee caps
- Capital adequacy and funding costs
Counterarguments
- Licenses are obtainable by well-capitalized competitors; regulation can commoditize products.
- Incumbent banks can leverage balance sheets and trust.
Garena (Digital Entertainment)
Mobile and online games publishing and development (freemium)
Revenue_share computed from FY2024 segment revenue disclosed in Sea's Q4/FY2024 results (SEC Exhibit 99.1): Digital entertainment US$1.911B of total US$16.820B. Source: https://www.sec.gov/Archives/edgar/data/1703399/000165495425002848/a6kexhibit991.htm
Direct Network Effects
Network
Direct Network Effects
Strength
Durability
Confidence
Evidence
Social/team gameplay and a large active base reinforce engagement and attract new players.
Erosion risks
- Hit-driven content cycles
- Platform policy changes (Apple/Google) and fees
- Regulatory restrictions on games in key markets
Leading indicators
- Quarterly active users and payers
- Bookings trend and deferred revenue
- Pipeline timing and new title launches
Counterarguments
- Network effects can decay quickly when players migrate to the next hit title.
- Competitors can replicate gameplay mechanics and outspend on UA.
Contractual Exclusivity
Legal
Contractual Exclusivity
Strength
Durability
Confidence
Evidence
Exclusive publishing relationships with developers can secure access to content and reduce direct competition for certain titles/markets.
Erosion risks
- Content license expirations or renegotiations
- Developer goes direct-to-consumer
- Regulatory approvals delay launches
Leading indicators
- Renewals of key publishing agreements
- Share of bookings from first-party vs licensed titles
- Concentration of bookings in top titles
Counterarguments
- Big publishers can bypass regional publishers via app stores and global marketing.
- Exclusivity is time-limited and may be expensive to maintain.
Evidence
number of sellers
Supports explicit buyer to seller flywheel dynamics described for Shopee.
logistics operations
Indicates Shopee runs in-house logistics alongside 3PLs and invests in delivery/warehousing capacity.
52% market share in 2024
Industry report summary stating Shopee's regional GMV share for 2024.
market share to 52 per cent
News coverage summarizing Momentum Works' 2024 regional market share estimate.
user base
Sea describes synergies between DFS and e-commerce/entertainment that expand user base and use cases.
Showing 5 of 8 sources.
Risks & Indicators
Erosion risks
- Seller and buyer multi-homing
- Aggressive competition from TikTok Shop and Temu
- Regulatory changes to marketplace liability
- Logistics cost inflation (labor, fuel)
- Service quality issues reduce trust
- 3PL commoditization of delivery speed
Leading indicators
- Southeast Asia platform GMV share trend
- Repeat purchase frequency / order density
- Seller count growth and churn
- Logistics cost per order
- On-time delivery rate and complaints
- Capex or opex allocated to logistics buildout
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.