Sea Limited (NYSE:SE) stock fell Tuesday after the Singapore-based company reported mixed third-quarter 2026 results.

Revenue jumped 43.4% year over year to $8.58 billion, beating the analyst estimate of $8.05 billion. However, earnings of 78 cents per share missed expectations of 81 cents.

Shopee Fuels Growth As Competition Intensifies

Sea operates three main businesses: e-commerce platform Shopee, gaming unit Garena and financial-services arm Monee.

Shopee remained the company’s main growth driver. However, competition from TikTok Shop, Lazada and Shein pressured pricing, Bloomberg reported Tuesday.

Shopee revenue surged 41.3% to $6.1 billion. Gross orders rose 25.5% to 4.5 billion, while gross merchandise volume climbed 23.3% to $39.7 billion.

The segment’s adjusted EBITDA increased 44.7% to $269.2 million.

Garena revenue climbed 28.6% to $840.1 million. Bookings rose 5.9% to $890 million, while adjusted EBITDA jumped 45.9% to $458.2 million.

Quarterly active users edged up 0.1% to 671.7 million. Paying users increased 4.1% to 68.6 million, while average bookings per user rose to $1.33 from $1.25.

AI Spending Weighs on Profitability

Sea’s consolidated adjusted EBITDA rose 28.9% to $931.3 million but missed the $990 million estimate.

Higher AI spending and intense e-commerce competition weighed on profitability, according to Bloomberg.

Meanwhile, Sea continues investing in AI, cloud computing and food delivery. The company is also expanding Shopee in Brazil and considering a potential Monee listing.

Bloomberg Intelligence warned that cloud expansion could require substantial spending on chips and storage before turning profitable.

Sea Expands Share Buyback Program

Sea generated $1.5 billion in operating cash flow during the quarter.

As of Sept. 30, cash, cash equivalents and restricted cash totaled $5.23 billion.

The company repurchased 11.1 million shares for $997.2 million under its existing $1 billion buyback program.

On Nov. 9, Sea’s board authorized another $1 billion in share repurchases without an expiration date.

SE Price Action

SE Price Action: Sea shares were down 3.03% at $75.60 during premarket trading on Tuesday, according to Benzinga Pro data.

Photo via Shutterstock

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.