Key Takeaways:
- Sea Limited’s Shopee platform dominates Southeast Asia’s e-commerce market, and with its return to profitability, the company still has a long growth runway ahead.
- MercadoLibre is driving e-commerce and digital payments across Latin America, with analysts expecting strong earnings growth as online shopping continues to expand.
- Alibaba remains one of China’s most important tech companies, and with its stock still trading at just 14x forward earnings, investors see significant upside potential.
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Amazon was once a $5 stock, and early investors made fortunes as it became a global e-commerce leader.
Today, these three stocks have the potential to be the next regional Amazon, dominating e-commerce and other industries in their respective markets.
1: Sea Limited (SE)
First is Sea Limited, a company that’s following Amazon’s playbook in Southeast Asia.
Sea operates Shopee, the #1 e-commerce platform in the region, and its SeaMoney platform is a fast-growing digital payments business.
Sea’s e-commerce business is back to profitability, which is why the stock is up around 200% this year.
Currently, the stock trades at a 40x forward P/E ratio, which means the stock might still be cheap due to its 20% annual expected revenue growth and higher expected annual earnings growth.
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The company still has a long growth runway, but stocks #2 & 3 look more undervalued today.
2: MercadoLibre (MELI)
Next, MercadoLibre is like the Amazon, PayPal, and Shopify of Latin America all rolled into one.
MercadoLibre dominates e-commerce and digital payments in high-growth markets like Brazil, Argentina, and Mexico, where online shopping is still in its early stages.
Analysts expect the company to see 30% annual earnings growth, so the stock could be really interesting if it falls.
Analysts thought the stock had 30% upside back when it traded at $1,700/share. Investors were able to get in on an “early Amazon” while it was still cheap:
This last stock is the most exciting because it’s still undervalued today, and that’s Alibaba.
3: Alibaba (BABA)
Alibaba is like the Amazon of China, but the company is also a leader in cloud computing, logistics, and digital payments, making it one of the most important tech companies in China.
Chinese stocks are still undervalued today, and we’ve seen billionaire investors like Michael Burry, David Tepper, and Howard Marks loading up on Chinese stocks like $BABA, $JD, Baidu, and $PDD.
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The best news is that the stock is still cheap today, at 14 times forward earnings with expected EPS growth.
The stock can still double from here and grow for the long term.
TIKR Takeaway
E-commerce and digital payments continue to expand globally, and these three companies are leading the charge in their regions.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks and was built for investors who think of buying stocks as buying a piece of a business.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. We aim to provide informative and engaging analysis to help empower individuals to make their own investment decisions. Neither TIKR nor our authors hold positions in any of the stocks mentioned in this article. Thank you for reading, and happy investing!
