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Oil tankers are increasingly coming under fire on several fronts as economic warfare is deployed as a weapon in the escalating conflicts in the Middle East and Europe.

Iran has stepped up its attacks on tankers in and around the Strait of Hormuz this month as it tries to impose its control over the crucial oil corridor. Tehran's Houthi allies in Yemen opened a second front this week, firing on two Saudi tankers in the Red Sea after declaring a maritime embargo against Riyadh.

Ukraine, meanwhile, says it has attacked more than 150 tankers, cargo ships, and other vessels associated with Russia's shadow fleet in the Sea of Azov and Black Sea, according to the Kyiv Post.

The oil market is now dealing with wars on multiple fronts, Helima Croft, head of global commodity strategy, told CNBC's "Power Lunch" on Thursday. Oil prices have surged more than 30% in July with Brent crude breaking $100 per barrel on Thursday for the first time since May, as the security situation has rapidly deteriorated in the southern Red Sea and Hormuz.

Ship traffic through Hormuz has plunged after rebounding in the weeks following the memorandum of understanding signed by the U.S. and Iran on June 17 to reopen the strait.

"After the collapse of the MOU, we have entered the worst phase of this conflict for merchant shipping," said Dimitris Maniatis, CEO of the maritime risk service Marisks, headquartered in Athens, Greece.

"The primary reason is the fact that the Iranians want to assert more authority and control over what is happening in the Strait of Hormuz," Maniatis said.

Some 61 commercial ships have been attacked in the Persian Gulf, Strait of Hormuz, and Gulf of Oman since March 1, resulting in the deaths of at least 17 seafarers and dozens of injuries, according to the International Maritime Organization, a United Nations agency.

At least a dozen tankers have been struck this month in and around Hormuz, killing at least two seafarers, as fighting sharply escalates between the U.S. and Iran, according to the IMO data.

The Red Sea attacks now threaten millions of barrels per day of oil that the Saudis redirected through a pipeline to its western coast amid to the security situation in Hormuz. The Saudi exports transit through the Bab el-Mandeb Strait, a chokepoint that links the Red Sea to the Gulf of Aden.

"The Iranians and the Houthis together now are implementing a very significant blow to American national interests, the American oil companies and of course Saudi Arabia," Maniatis said. "But they're not managing to entirely choke exports."

Houthi attacks on ships in the Red Sea from 2023 to 2025 in response to Israel's war in Gaza dramatically reduced traffic through the Bab el-Mandeb. Shipping through the strait had still not fully recovered.

The Saudis can redirect some oil through a pipeline that stretches from a port on the Red Sea across Egypt to the Mediterranean but the logistics are complex, said Matt Smith, director of commodity research at Kpler.

Supertankers cannot transit the Suez Canal fully loaded because the channel is too shallow, Smith said. The Saudis would have to unload half the cargo at the port of Ain Sokhna, pipe it through to the port of Sidi Kerir, send the supertanker through Suez and retrieve the oil on the other side, he said.

The supertanker would then face a much longer journey around Africa to destinations in Asia, and would have to return on the same route through the Suez due to Houthi threats at the Bab el-Mandeb, Smith said. The roundtrip journey would take around eight weeks, he said.

Oil shipments by sea from the Middle East are increasingly facing a "no-way out" scenario due to the disruptions in the Red Sea, Croft said.

In the Black Sea, meanwhile, the Caspian Pipeline Consortium has stopped loading tankers at the Russian port of Novorossiysk due to attacks on vessels. Kazakhstan exports about 80% of its crude oil through that pipeline, Croft said in a note to clients this week.

The Kazakhs have limited alternatives to the pipeline, which means their production of around 1.7 million bpd in June, could face shut-ins, Croft said. The Ukrainians have also pounded Russian refineries, resulting in more than 50% of the country's capacity coming offline, the analyst said.

"Russia has now put a export ban on products and their refineries have been hit so massively by Ukraine," Croft told CNBC. "Russia is one of the largest product exporters, one the largest diesel exporters. It's really tightening the products market as well as the crude market."

The dangerous escalation in the Middle East could potentially spike Brent oil prices beyond the 2022 high of $128 per barrel after Russia invaded Ukraine, Croft said in the note. In a worst-case scenario, where the region descends into full-scale war, Brent could surpass the 2008 peak of $148 per barrel, she said.

Sea Limited Sponsored ADR (SE - Free Report) closed the most recent trading day at $99.50, moving -5.13% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.21%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 2.15%.

Shares of the company have appreciated by 13.08% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.58%, and the S&P 500's gain of 0.42%.

The upcoming earnings release of Sea Limited Sponsored ADR will be of great interest to investors. On that day, Sea Limited Sponsored ADR is projected to report earnings of $1 per share, which would represent year-over-year growth of 17.65%. Simultaneously, our latest consensus estimate expects the revenue to be $7.34 billion, showing a 36.82% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.15 per share and revenue of $30.72 billion. These totals would mark changes of +26.14% and +30.84%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Sea Limited Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.86% decrease. Sea Limited Sponsored ADR is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Sea Limited Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 25.3. This denotes a premium relative to the industry average Forward P/E of 18.63.

It's also important to note that SE currently trades at a PEG ratio of 0.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.01.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Saudi Arabian oil company Aramco's logo during the CERAWeek energy conference 2026 in Houston, Texas, U.S., March 24, 2026. REUTERS/Danielle Villasana Purchase Licensing Rights, opens new tab

CompaniesLONDON, July 23 (Reuters) - Saudi Aramco has offered additional crude cargoes ​for loading from Egypt's Mediterranean ‌port of Sidi Kerir, according to five trading sources, signalling ​a potential shift in ​export routes as Houthi threats ⁠to shipping raise risks ​for oil movements through the ​Red Sea and the Bab el-Mandeb strait.

The cargoes are being offered on ​a spot basis, two ​of the sources said, supplementing supplies ‌to ⁠Aramco's term buyers. While Aramco already supplies some customers in Europe and North America ​from Sidi ​Kerir, ⁠the additional volumes suggest the Saudi producer ​is seeking greater flexibility ​in ⁠reaching its markets as security risks persist along the ⁠Red ​Sea route.

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Aramco declined ​to comment.

Reporting by Ahmad Ghaddar and Robert ​Harvey, Editing by Louise Heavens

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© 2022 Getty Images / Getty Images News via Getty Images

The math of moving Middle East crude to global markets got dramatically worse this week. On Tuesday, only three commodity vessels transited the Strait of Hormuz, the lowest daily count since early May, and by early Wednesday the waterway showed no observable traffic at all. That was already the story oil traders were bracing for as the reignited U.S.-Iran war grinds into its second week. Then a second front opened. Yemen’s Houthi militant group declared it would deny safe passage through the Bab el-Mandeb Strait to any vessel calling at Saudi Arabian ports, putting the alternative route Saudi Arabia had been leaning on under direct threat.

The evidence is showing up in tanker tracks, not press releases. The LPG tanker Gas King, after loading at the Saudi port of Yanbu, reversed course to exit via the Suez Canal instead of continuing south. The supertanker New Explorer, carrying Saudi oil bound for Singapore, is idling in the Red Sea showing a “not under command” status. The Aframax vessel Lahore halted after picking up a Saudi cargo. The picture is fluid: the Chinese VLCC Xin Long Yang, which had earlier U-turned, has since reversed again and resumed its original route toward Bab el-Mandeb. Some Asian buyers are still sending ships in, hoping to complete pickups before the window closes.

Why the Red Sea Route Suddenly Matters More The Bab el-Mandeb corridor became the industry’s insurance policy after Hormuz risk went vertical. Saudi Arabia was exporting record volumes from its Red Sea terminals just before the Houthi threat emerged, roughly 5.9 million barrels a day from the two Yanbu terminals in the week ending July 17. That is a large, currently-flowing volume of crude now sitting behind a maritime question mark. The Joint Maritime Information Center warned late Tuesday that “the Houthis have completed preparations to attack shipping, including the deployment of missiles and drones.”

Rerouting carries real costs. Shifting Yanbu-to-Asia flows around Africa instead of through the Red Sea could affect several million barrels a day and add roughly a month of transit time for some Asian refiners’ cargoes. That is a working-capital shock and a physical-inventory shock at the same time.

What the Market Is Pricing Crude has moved accordingly. Brent crude futures are up more than 25% this month, and both benchmarks jumped again on the tanker news, with WTI trading near $88 and Brent near $95 as of Wednesday’s reporting. That is a sharp reversal from mid-July, when Brent had drifted back to $81.62 on July 13 and WTI to $79.20. The May playbook, when WTI briefly touched $112.25, is being pulled off the shelf.

The pain is already leaking to the pump. U.S. regular gasoline jumped $0.15 in a single week to $4.00 a gallon on July 20, reversing a month-long slide and pushing prices back into the 76.9th percentile of the past year. The May peak was $4.50.

What to Watch The chokepoint remains open. Loadings at Yanbu were still continuing as of Wednesday, and vessels are making individual calls in real time. Oil futures will keep swinging on headlines, but the signal to watch is the daily transit count at both Hormuz and Bab el-Mandeb over the next two weeks, and whether the Houthis follow through on a single high-profile Saudi-linked tanker. If both chokepoints stay constrained into August, the EIA’s May scenario, in which global oil inventories decrease by 2.6 million barrels per day this year, starts to look optimistic rather than cautionary.

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Key Points:A disruption at the Red Sea’s southern gateway could push oil prices higher.WTI remains bullish above key support and may target the $100–$110 range.Brent could extend its rally toward $120 if it remains above $90.

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A full closure of the Bab el-Mandeb Strait could send oil prices higher. The route transports crude oil and petroleum products from the Middle East to Europe and Asia. Any major disruptions may reduce the available shipping routes to transport the oil products from the Middle East. Traders can then factor in a greater supply risk. This may push up the crude oil prices and renew the fears of another strong rally.

Saudi oil exports would face the biggest immediate pressure. Tankers from Red Sea port of Yanbu may have to pass the Cape of Good Hope. This longer route would add weeks to delivery times. It may also contribute to higher freight, fuel and insurance expenses. Delays may be possible for Asian refiners and they may also have to search for alternative supplies. This competition can affect both crude oil and refined product prices.

The effects could also spread over to the diesel and jet fuel markets. Europe depends on the shipments that pass through the Bab el-Mandeb. A closure would reduce supplies and boost refining margins. The increased energy cost may also contribute to inflation and slowdown in global economic growth. But if the disruption is severe and is prolonged for weeks, oil prices could climb back to $120 a barrel.

WTI Oil Forecast: Break Above $86 Targets $100 WTI crude oil formed a strong bottom during the consolidation from June 18 to July 13 and broke higher. The price has also broken the descending trendline extending from the May 19 high and is now approaching the $86 resistance. This resistance is defined by the descending channel pattern.

A break above $86 will likely push WTI crude oil toward the $96 level while a break below $72 will open the door for another drop toward the $60 region. The short term target for WTI crude oil is expected to be in the $100-$110 range.

The weekly chart also points to the higher prices in the coming days. The price has already closed above the $80 region and is now looking toward the $100 zone.

The oil market has experienced strong volatility since the U.S.-Iran war. Therefore, the next move in the market will likely be driven by geopolitical developments.

Brent Oil Forecast: Break Above $90 Opens Path to $120 Brent crude oil formed a strong bottom at the $72 support level, initiated a rebound and closed above the 50-day SMA. The 50-day SMA remains above the 200-day SMA, and the price must now break above $90 to continue the bullish momentum in Brent crude oil.

However, a break below $81 will negate the short-term bullish momentum and keep Brent crude oil in the consolidation zone. Brent crude oil is rebounding from oversold conditions, which indicates that a break above $90 could open the door for a strong rally toward $120.

The weekly chart for Brent crude oil also shows strong bullish momentum as the price has recovered above the 50- and 200-week SMAs. The close above $91.29 last week indicates that Brent crude oil may move higher toward $100.

A break above $100 will signal a move to $130. The oil price correction in WTI and Brent crude was driven by the extremely overbought conditions shown by the weekly RSI. But the RSI has now normalized and prices are poised to regain momentum.

Bottom Line Oil prices remain strong above the key support levels due to the rising geopolitical and supply risks. A closure of the Bab el-Mandeb Strait could disrupt shipping routes, delay Saudi exports and increase transport costs. WTI may extend its recovery toward $96 and then the $100-$110 range if it breaks above $86. Brent could also move toward $130 if it holds above $90. But a drop below $72 in WTI or $81 in Brent would weaken the short term bullish outlook.

Read more: Iran Blockade Pushes WTI and Brent Toward $90

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Muhammad Umair is a finance MBA and engineering PhD. As a seasoned financial analyst specializing in currencies and precious metals, he combines his multidisciplinary academic background to deliver a data-driven, contrarian perspective. As founder of Gold Predictors, he leads a team providing advanced market analytics, quantitative research, and refined precious metals trading strategies.

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Gang Ye, the COO of Sea Limited (SE +1.58%), reported the sale of 40,000 Class A ordinary shares for approximately $4.2 million in an indirect transaction, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$4.2 millionShares sold40,000Post-transaction shares (directly held)21,636,405Post-transaction shares (indirectly held)320,000Post-transaction value$2.28 billionTransaction value based on SEC Form 4 weighted average sale price ($105.61); post-transaction value based on July 17, 2026 market close ($104.05).

Key questionsWhat was the structural nature of this transaction?
This was an indirect sale executed through a British Virgin Islands entity controlled by Ye. The activity was non-discretionary, occurring under a Rule 10b5-1 trading plan established in late 2025 to manage equity holdings through a systematic schedule.How significant was the reduction in the insider's equity position?
The 40,000-share sale had a minimal impact on the insider's total exposure, reducing the overall stake by 0.2%. The vast majority of the insider's equity remains held directly, totaling over 21.6 million shares following the transaction.What is the company's current market profile?
Sea Limited is a Singapore-based firm operating in digital entertainment, e-commerce, and digital financial services with a market capitalization of $62.5 billion as of July 17, 2026. Company OverviewMetricValueShare Price (as of market close 2026-07-17)$104.05Market Capitalization$62.5 billionRevenue (TTM)$25.2 billionNet Income (TTM)$1.6 billionCompany SnapshotSea Limited operates a diversified digital platform ecosystem spanning digital entertainment through its Garena brand, e-commerce operations, and digital financial services across Southeast Asia, Latin America, and other international markets.The company generates revenue through multiple channels including in-game monetization and eSports events within its digital entertainment segment, transaction fees and marketplace commissions from e-commerce operations, and financial services offerings including digital payments and lending solutions.Sea Limited serves a broad consumer base across emerging markets in Southeast Asia and Latin America, targeting mobile and PC gamers, online shoppers, and consumers seeking digital financial services in regions with high growth potential and expanding digital adoption.Sea Limited is a leading digital platform operator with significant scale, commanding a $62.5 billion market capitalization and generating $25.2 billion in TTM revenue across its integrated ecosystem. The company's competitive advantage derives from its diversified business model that leverages network effects across gaming, commerce, and fintech segments, combined with deep market penetration in high-growth emerging markets where digital adoption continues to accelerate. Sea Limited has established itself as a critical infrastructure provider in digital commerce and entertainment across Southeast Asia and Latin America.

What this transaction means for investorsYe's BVI entity is working through a schedule set late last year, and the falling execution prices are just what the market handed it. The Sea co-founder's direct stake of more than 21.6 million shares, worth over $2.2 billion, hasn't moved through either sale, and trimming 0.2% of a position that size is a bookkeeping exercise for a billionaire. In other words, this isn’t something long-term investors should read too deeply into without any accelerated pace of selling.

The stock, meanwhile, has clawed back about 30% from its March low and still sits far below where it started the year. That gap is peculiar against the firm’s latest results: First-quarter revenue rose 47% to $7.1 billion as adjusted EBITDA topped $1 billion, and Shopee handled a record $37.3 billion in merchandise. The recovery off the March bottom will be important to watch. If the business keeps compounding at these rates, the rebound has room to run. If growth cools, however, a stock this far off its highs could find lower lows.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool has a disclosure policy.

SummaryOil prices could climb above $115-$120 should flows be disrupted, consultant saysSaudi crude shipments to Asia could face longer routesAsian refiners could face delays of around a month for Yanbu cargoes, Kpler analyst saysLONDON/HOUSTON, July 20 (Reuters) - A successful effort by Yemen's Houthis to ​shut the Bab el-Mandeb Strait would strike at one of the world's most important oil shipping routes, potentially triggering a ‌fresh surge in crude prices, disrupting fuel supplies and adding to strains on the global economy.

Yemen's Iran-aligned Houthis on Monday declared a naval blockade against Saudi Arabia, its military spokesperson said. A closure of the Red Sea's southern gateway would remove a critical alternative route for the kingdom to the Strait of Hormuz and intensify fears of shortages.

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"After ​oil prices moved higher on escalating U.S.-Iran tensions last week and the resulting slowdown in Hormuz transits, traders are watching for ​catalysts that would justify a further rally," said Richard Bronze of consultancy Energy Aspects.

"The Houthis resuming maritime attacks and ⁠effectively shutting the Bab el-Mandeb would certainly qualify."

Oil rose less than 1% after the Houthi statement to trade around $89 a barrel . Hopes of ​Iran and the United States resuming peace talks had earlier weighed on prices. Oil futures have peaked at $126 this year - below 2008's all-time high of $147.

ASIAN REFINERS WOULD ​FACE DELAYS IN GETTING CRUDEThe Bab el-Mandeb connects the Red Sea with the Gulf of Aden and is a key route for crude and fuel shipments moving between the Middle East, Europe and Asia. Since Houthi attacks on shipping began in 2023, many vessels have already rerouted around Africa, adding costs and delays to global ​trade.

Item 1 of 3 Boats float near the coast of Bab el-Mandeb, Yemen April 2, 2026. REUTERS/File Photo

[1/3]Boats float near the coast of Bab el-Mandeb, Yemen April 2, 2026. REUTERS/File Photo Purchase Licensing Rights, opens new tab

A full closure would have the biggest immediate impact on Saudi crude exports from the Red Sea port of Yanbu. Matt Smith, commodity research ​director at Kpler, said Asian refiners receiving those barrels could face delays of around a month as tankers are forced to sail around the Cape of Good ‌Hope.

"The impact ⁠is going to be massive in the first month," Smith said. "The biggest impact is going to be on Saudi flows."

Bronze estimated that more than 3 million barrels per day of Saudi crude currently shipped via the Red Sea to Asia could be forced onto much longer routes. The disruption would create logistical bottlenecks because fully loaded VLCCs cannot transit the Suez Canal while capacity on Egypt's SUMED pipeline, which links the Red Sea ​and Mediterranean Sea, is fixed.

Saudi Arabia ​has shipped on average over 4.5 ⁠million bpd of crude and fuel from Yanbu since April, about 70% of which went to Asia, Kpler data shows.

The impact would extend far beyond oil markets, said John Paisie, president of consultancy Stratas Advisors.

"If they ​really stop and severely hinder those barrels through the Red Sea, that is going to have an ​impact on oil prices ⁠as well as refined product prices," he said. "It undermines the whole global economy. At some point, you could have a global recession.”

The immediate oil market reaction would likely be another jump in crude prices as refiners compete for available supplies, analysts said. Paisie said oil prices could climb back above $115-$120 a ⁠barrel, while ​freight and insurance costs would also rise as ships take longer routes around Africa.

European diesel refining ​margins surged to a record above $65 a barrel on Friday and remained near that level on Monday. Supplies of diesel and jet fuel from Asia and the Middle East to ​Europe typically transit the Bab el-Mandeb.

Reporting by Ahmad Ghaddar and Robert Harvey in London, and Arathy Somasekhar in Houston, editing by Alex Lawler and Sanjeev Miglani

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CompaniesMOSCOW, July 17 (Reuters) - An oil tanker chartered for loading oil at the Caspian Pipeline Consortium ​terminal off Russia's Black Sea coast was attacked and ‌damaged by two drones on Friday, CPC said.

Sources told Reuters the vessel, the Suezmax-class Nordic Zenith, had been chartered by ExxonMobil.

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CPC did ​not identify any party as responsible for the ​incident. The past week has seen a sharp escalation ⁠in attacks by both Russia and Ukraine on shipping in ​the Black and Azov seas, marking a new phase in ​a war that has until now mainly been fought on the ground and in the skies.

CPC said in a statement that a ​fire broke out on the Nordic Zenith but was ​later extinguished. It said nearby CPC vessels evacuated 13 crew members while nine others chose to remain ‌on ⁠board.

"The tanker has been removed from the loading schedule and is unfit for mooring or loading operations at the CPC terminal," CPC said on its Telegram channel.

The CPC is ​a 940-mile (1,510 km) ​oil pipeline ⁠connecting Kazakhstan's Caspian Sea oil deposits with Russia's Black Sea port of Novorossiysk. Oil ​loaded at Novorossiysk is then taken by tanker ​to ⁠world markets.

CPC accounts for about 80% of Kazakhstan’s oil exports. Its operations have been disrupted at various points in the ⁠war ​by Ukrainian attacks on pumping stations ​in Russia and by drone strikes on the CPC loading terminal near Novorossiysk.

Reporting ​by Reuters; writing by Mark Trevelyan; Editing by Louise Heavens

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The full moon rises in the background over the infrastructure on D Island, the main processing hub, at the Kashagan offshore oil field in the Caspian sea in western Kazakhstan August 21, 2013.... Purchase Licensing Rights, opens new tab Read more

PERTH, July 17 (Reuters) - Oil prices inched higher on Friday after the U.S. and Iran stepped up attacks across the Gulf, with their broken truce limiting oil ​flows out of the Strait of Hormuz and with Tehran asking the Houthi ‌movement to stand ready to shut the Red Sea export route.

Brent crude futures rose $1.05, or about 1.25%, to $85.28 a barrel by 0118 GMT, and U.S. West Texas Intermediate futures rose $1.03, or 1.3%, ​to $79.98 a barrel, erasing losses from the previous session.

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Both benchmark contracts have ​climbed nearly 12% this week, with Brent on track for a third ⁠consecutive weekly gain and WTI for a second weekly gain.

For the first time ​since a memorandum of understanding paused fighting last month, the United States launched two big ​waves of air strikes in a single day on Wednesday, mostly on targets near Iran's southern coast, and kept firing on Thursday.

"Oil security is still a critical issue," International Energy Agency Executive ​Director Fatih Birol said on Thursday at a Council on Foreign Relations event in Washington.

"We ​should be worried, and I am worried, if the situation does not improve in the next ‌few ⁠weeks," he said.

In a statement, U.S. Central Command said U.S. forces began "a new wave of strikes against Iran for the sixth consecutive night to further degrade Iranian military capabilities" at 2 p.m. EDT (1800 GMT) or 9:30 p.m. in Tehran.

Tehran has countered with missiles and ​drones targeted at ​U.S. military bases in ⁠neighbouring states, including a barrage at a recently expanded air base in Jordan.

Adding to oil supply concerns, Iran's leadership has told ​its Houthi allies to be prepared to close the Red ​Sea oil ⁠route if the U.S. strikes Iranian power infrastructure, three sources told Reuters.

IG analysts said technically, WTI could test the mid-$80s if it holds above key support in the mid-$70s.

Separately, Trump ⁠Media & ​Technology Group unveiled a paid-for, licensed data feed that will ​give banks and trading firms "the fastest" access to posts from influential Truth Social accounts, such as President ​Donald Trump's, whose posts often move oil markets.

Reporting by Helen Clark; Editing by Sonali Paul

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Yanjun Wang, the CCO and GC of Sea Limited (SE 4.62%), sold 3,000 Class A ordinary shares in an indirect transaction on July 14 and July 15, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$332,310Shares sold (indirectly held)3,000Post-transaction shares (directly held)1,162,442Post-transaction shares (indirectly held)34,000Post-transaction value$133.24 millionTransaction value based on SEC Form 4 weighted average sale price ($110.77); post-transaction value based on July 15, 2026 market close ($111.36).

Key questionsWhat was the mechanism for this share disposal?
The transaction was executed via a British Virgin Islands entity under a Rule 10b5-1 trading plan established in March 2026. These plans allow insiders to schedule transactions in advance to mitigate concerns regarding the possession of material non-public information.What is the current scale of the insider's equity alignment?
Following this sale, Wang maintains significant exposure to the company through about 1.2 million directly held shares and 34,000 shares held indirectly. This position indicates a high degree of ongoing alignment with shareholder interests.How does the current activity relate to total holdings?
The sale of 3,000 shares liquidated only 0.25% of the insider's total beneficial ownership. This modest reduction suggests the transaction is a routine portfolio management event rather than a shift in institutional conviction.What is the recent performance context for the security?
As of July 15, 2026, the transaction date, the company has generated a one-year total return of -30%, providing a clinical backdrop to this pre-scheduled liquidity event.Company OverviewMetricValueShare Price (as of market close 2026-07-15)$111.36Market Capitalization$68.2 billionRevenue (TTM)$25.2 billionNet Income (TTM)$1.6 billionCompany SnapshotSea Limited operates three core business segments: digital entertainment through its Garena platform offering online games and eSports events, e-commerce operations serving consumers across Southeast Asia and Latin America, and digital financial services providing payment and fintech solutions to its customer base.The company generates revenue through multiple channels, including in-game purchases and advertising within its digital entertainment platform, transaction fees and commissions from e-commerce marketplace operations, and service fees from its digital financial services offerings.Sea Limited primarily serves digital-native consumers and merchants across Southeast Asia, Latin America, and other emerging markets, with a particular focus on mobile-first users in developing economies seeking gaming entertainment, online shopping, and financial services.Sea Limited is a diversified digital platform operator with a $68.2 billion market capitalization and TTM revenues of $25.2 billion, positioning it as a leading technology conglomerate in emerging markets. The company leverages its integrated ecosystem spanning entertainment, commerce, and fintech to capture multiple revenue streams while maintaining significant scale across geographically fragmented markets. Sea's competitive advantage derives from its multi-platform approach, deep regional expertise in Southeast Asia and Latin America, and ability to cross-monetize its user base across its three core business segments.

What this transaction means for investorsThis sale ultimately looks like another scheduled slice off the same plan that Wang’s been using to sell off every few days over a period of months. Wang sold through a BVI entity, and it’s worth noting that 3,000 shares clears just a quarter of a percent of her stake while she keeps more than 1.2 million shares. When an insider sells small, regular amounts on autopilot, as is the case here, the recurring nature is itself the tell: this is programmed diversification, not someone reacting to the stock's rough year. If anything, the louder signal points the other way, since Sea has been buying back its own shares under a $1 billion program.

The business keeps outrunning its stock. Sea's first-quarter revenue jumped 47% to $7.1 billion, and adjusted EBITDA topped $1 billion for the first time, powered by Shopee's record volume and a fast-growing lending arm. CEO Forrest Li framed 2026 as a year to lean into growth while holding financial discipline. Ultimately, for long-term investors, this recurring selling is noise. More important will be whether Shopee's profitability holds and whether the firm’s expanding SME loan book, which climbed 71% to nearly $10 billion, stays clean.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool has a disclosure policy.

Sea Limited Sponsored ADR (SE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned +22.6%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Internet - Software industry, which Sea Limited falls in, has gained 8.6%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Sea Limited is expected to post earnings of $1.00 per share for the current quarter, representing a year-over-year change of +17.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.2%.

The consensus earnings estimate of $4.15 for the current fiscal year indicates a year-over-year change of +26.1%. This estimate has changed -2.9% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.68 indicates a change of +37% from what Sea Limited is expected to report a year ago. Over the past month, the estimate has changed -0.7%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Sea Limited.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Sea Limited, the consensus sales estimate of $7.34 billion for the current quarter points to a year-over-year change of +36.8%. The $30.72 billion and $37.7 billion estimates for the current and next fiscal years indicate changes of +30.8% and +22.7%, respectively.

Last Reported Results and Surprise HistorySea Limited reported revenues of $7.33 billion in the last reported quarter, representing a year-over-year change of +43.2%. EPS of $0.84 for the same period compares with $0.86 a year ago.

Compared to the Zacks Consensus Estimate of $6.95 billion, the reported revenues represent a surprise of +5.5%. The EPS surprise was -12.5%.

Over the last four quarters, Sea Limited surpassed consensus EPS estimates times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Sea Limited is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Sea Limited. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

Investors interested in Internet - Software stocks are likely familiar with VTEX (VTEX) and Sea Limited Sponsored ADR (SE). But which of these two stocks offers value investors a better bang for their buck right now?

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Sea Limited Sponsored ADR (SE - Free Report) .

Sea Limited currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.

Of the 20 recommendations that derive the current ABR, 15 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 75% and 10% of all recommendations.

Brokerage Recommendation Trends for SE

Check price target & stock forecast for Sea Limited here>>>

The ABR suggests buying Sea Limited, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in SE?In terms of earnings estimate revisions for Sea Limited, the Zacks Consensus Estimate for the current year has declined 2.9% over the past month to $4.15.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Sea Limited. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Sea Limited with a grain of salt.

Sea Limited Sponsored ADR (SE - Free Report) closed at $111.14 in the latest trading session, marking a +1.86% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.42%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.29%.

Heading into today, shares of the company had gained 27.33% over the past month, outpacing the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.

Market participants will be closely following the financial results of Sea Limited Sponsored ADR in its upcoming release. The company is forecasted to report an EPS of $1, showcasing a 17.65% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $7.34 billion, up 36.82% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.15 per share and revenue of $30.72 billion. These totals would mark changes of +26.14% and +30.84%, respectively, from last year.

Any recent changes to analyst estimates for Sea Limited Sponsored ADR should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.86% lower. Sea Limited Sponsored ADR is currently a Zacks Rank #3 (Hold).

Looking at valuation, Sea Limited Sponsored ADR is presently trading at a Forward P/E ratio of 26.32. This expresses a premium compared to the average Forward P/E of 19.73 of its industry.

Also, we should mention that SE has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.06 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Sea Limited Sponsored ADR (SE - Free Report) closed the most recent trading day at $105.00, moving +1.65% from the previous trading session. This change outpaced the S&P 500's 0.72% gain on the day. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.12%.

Heading into today, shares of the company had gained 19.34% over the past month, outpacing the Computer and Technology sector's loss of 6.12% and the S&P 500's loss of 0.9%.

The investment community will be paying close attention to the earnings performance of Sea Limited Sponsored ADR in its upcoming release. The company's upcoming EPS is projected at $1, signifying a 17.65% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.34 billion, up 36.82% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.15 per share and a revenue of $30.72 billion, indicating changes of +26.14% and +30.84%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Sea Limited Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.86% lower. Sea Limited Sponsored ADR currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Sea Limited Sponsored ADR is currently trading at a Forward P/E ratio of 24.92. This expresses a premium compared to the average Forward P/E of 19.82 of its industry.

Also, we should mention that SE has a PEG ratio of 0.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.08.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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On June 17, 2026, Sea Ltd SE shares rose 4.6% today, bringing the current price to $90.84. The stock has experienced a 52-week range of $77.05 to $199.30, highlighting significant volatility over the past year.

GF Value™ verdict: Current price is $90.84, compared to GF Value™ of $132.49, indicating a potential upside of 31.4%. GF Score™ is 71/100, suggesting the stock is rated as above average. Most notable signal: Recent insider activity shows that insiders sold $175.8M in the last 3 months with no buying activity. Is SE Overvalued or Undervalued? Sea Ltd's current price of $90.84 is significantly below the GF Value™ of $132.49, indicating that the stock is undervalued by approximately 31.4%. This presents a potential opportunity for investors looking for value in the market. The GF Valuation label categorizes the stock as significantly undervalued, which suggests that the current price does not reflect the company's intrinsic value based on historical performance and future projections. However, it is essential to consider the risks associated with the investment, particularly given the company's recent performance and the lack of insider buying.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation suggests an opportunity, investors should carefully consider market dynamics and company fundamentals before making decisions.

How Does SE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 35.8x 98.2x Forward P/E 30.1x - Sea Ltd's current P/E ratio of 35.8x is significantly below its 5-year median P/E of 98.2x, indicating that the stock is trading at a lower valuation compared to its historical performance. This analysis aligns with the GF Value™ verdict of being undervalued, as the lower P/E ratio suggests that investors are currently paying less for the company's earnings than they have in the past.

What Does SE's GF Score™ Tell Us? Metric Rating GF Score™ 71/100 Financial Strength 8/10 Profitability 4/10 Growth 9/10 Valuation 4/10 Momentum 2/10 The GF Score™ of 71/100 indicates that Sea Ltd is positioned above average in terms of potential long-term returns. The strongest area is financial strength, rated 8/10, which suggests a robust balance sheet. However, the lowest score comes from the momentum rank at 2/10, indicating recent weak performance trends. Overall, while the company shows strong growth potential, the profitability and momentum scores suggest caution in the near term.

What Are Insiders Doing with SE Stock? Insider activity for Sea Ltd has shown a significant trend where insiders sold $175.8 million in shares over the last three months, with no reported buying activity. This pattern may suggest a lack of confidence among insiders regarding the company's short-term prospects, which could be a red flag for potential investors.

What This Means for Investors Based on the analysis, Sea Ltd SE appears to be undervalued according to the GF Value™ metric, indicating a potential opportunity for investors. However, the significant insider selling and lower momentum rank should be considered as potential risks before making any investment decisions.

For the complete analysis, visit the Sea Ltd SE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SE's GF Score™?

SE's GF Score™ is 71/100, indicating that it is rated above average in terms of potential long-term returns based on its financial metrics.

Is SE overvalued or undervalued?

SE is currently undervalued based on its GF Value™, with a significant upside potential of 31.4% compared to its intrinsic value.

What is SE's P/E ratio?

SE's P/E (TTM) is 35.8x, which is significantly below its 5-year median of 98.2x, indicating that the stock is trading at a lower valuation than its historical average.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Sea Limited Sponsored ADR (SE - Free Report) closed the most recent trading day at $89.04, moving -2.45% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq depreciated by 1.33%.

Coming into today, shares of the company had gained 4.59% in the past month. In that same time, the Computer and Technology sector gained 4.52%, while the S&P 500 gained 2.02%.

The upcoming earnings release of Sea Limited Sponsored ADR will be of great interest to investors. The company is forecasted to report an EPS of $1.03, showcasing a 21.18% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.34 billion, indicating a 36.82% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.24 per share and a revenue of $30.72 billion, signifying shifts of +28.88% and +30.84%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Sea Limited Sponsored ADR. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sea Limited Sponsored ADR is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Sea Limited Sponsored ADR is presently trading at a Forward P/E ratio of 21.53. For comparison, its industry has an average Forward P/E of 18.33, which means Sea Limited Sponsored ADR is trading at a premium to the group.

Meanwhile, SE's PEG ratio is currently 0.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 0.99 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Sea Limited Sponsored ADR (SE - Free Report) .

Sea Limited currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.

Of the 20 recommendations that derive the current ABR, 15 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 75% and 10% of all recommendations.

Brokerage Recommendation Trends for SE

Check price target & stock forecast for Sea Limited here>>>

The ABR suggests buying Sea Limited, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is SE a Good Investment?Looking at the earnings estimate revisions for Sea Limited, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.24.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Sea Limited. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Sea Limited.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Panthalassa began testing Ocean-2, a prototype data center node off the coast of Washington state, in 2025.

Panthalassa

Among big future businesses Elon Musk is selling investors in newly public SpaceX is his plan to put data centers in space: solar-powered satellites, spread across a vast network, processing information in space and beaming it back to Earth. As pitches go, it has the clean geometry of a Musk bull case. It’s the kind of “I want to die on Mars, just not on impact” sci-fi idea the newly minted trillionaire is famous for. And it’s particularly well timed: the AI feeding frenzy is in overdrive, but the terrestrial data centers they require are becoming an unwanted menace in many communities, raising utility rates, creating noise and pollution, and generating few local economic benefits.

SpaceX hopes to begin launching orbital data centers in 2028, though its IPO filing gives no cost estimates for such a system. It does, however, include the kind of caveat that sits in a securities filing like a flare on the runway: The plan involves “significant technical complexity, unproven technologies, or technologies that do not exist or may require significant advancement, and such initiatives may not achieve commercial viability.”

SpaceX lawyers meant it as a warning. Musk could probably plaster it on the lobby wall.

But if the goal is simply to move data centers off land and run them at lower cost, there’s a far better option: the ocean. It’s far away from taxpayers, zoning fights and the sudden arrival of hyperscale neighbors. And it may be a climate-friendly source of power and a cheap way to cool massive data centers.

“What we’re doing is totally crazy”

This is where Panthalassa wants to go. The Portland, Oregon startup, backed by Peter Thiel and a raft of Silicon Valley venture firms, has spent the past decade developing floating data centers that generate their own electricity from open-ocean waves and cool themselves with cold seawater. It expects commercial units to be operational in 2027, a year before SpaceX says it may begin putting compute satellites in orbit, with all those securities filing caveats.

“What we’re doing is totally crazy,” CEO and cofounder Garth Sheldon-Coulson told Forbes. “We're the first company that’s going to the middle of the ocean to do this.”

The Ocean-2 prototype node that Panthalassa (Greek for “all sea”) has been testing off the coast of Washington state since last year looks less like a data center than a marine-industrial lollipop: a 70-meter steel tower submerged below the surface, with a bulbous head floating above the waterline. As it bobs up and down in the waves, water pumps up through the neck and into the spherical reservoir at the top, then flows through a turbine that can generate up to a megawatt of continuous electricity. The unit Panthalassa plans to deploy next year will be loaded with chips and computing hardware to run AI learning operations on board, beaming out data via satellite, just like Musk’s SpaceX concept.

“This will be the lowest cost way to do large segments of AI computing, inference reinforcement learning, without any emissions at all,” Sheldon-Coulson told Forbes.

Tapping the ocean for energy has intrigued scientists for over a century. It has also humbled them. No large-scale systems or techniques have yet proven commercially viable. The interest persists because it's a massive resource. One assessment from the International Energy Agency estimated wave power could produce thousands of terawatt-hours of electricity annually. Even capturing a fraction of that on a consistent basis would be a game-changer. The ocean, inconveniently, has had a vote in every prior business plan.

Panthalassa cofounders Brian Moffat, left, and Garth Sheldon-Coulson, center, with Chief Engineer Daniel Place.

Panthalassa

Panthalassa isn’t the first company to see the ocean as a data-center workaround. Microsoft spent years testing undersea units connected to onshore power off the coast of Scotland, before ending the research in 2024. China is also experimenting with undersea data centers powered by wind turbines. Those projects use the ocean mainly as a cooling system. Panthalassa wants it to be a power plant as well.

“We operate in the deep ocean where the wave energy is most abundant, as opposed to shallow coastal waters,” Sheldon-Coulson said. “Our nodes are self-propelled and can reposition themselves autonomously. There is no connection to the seafloor.”

He cofounded Panthalassa in 2016, after earning a master's at MIT and a Harvard law degree, with engineer Brian Moffatt, who was also researching wave energy. Chief engineer Daniel Place came from SpaceX, while other engineering staff came from tech and aerospace giants, including Google, Blue Origin, Apple, Boeing, Amazon and Tesla. In May, Panthalassa raised $140 million in a Series B round for its first commercial deployment, backed by Thiel, John Doerr, Marc Benioff’s TIME Ventures, Max Levchin’s SciFi Ventures, and tech funds including Gigascale Capital, created by Mike Shroepfer, who oversaw construction of data centers for Meta when he was its CTO.

Shroepfer sees the concept of floating data center buoys as audacious. He also thinks it is a possible answer to anti-data-center backlash and the brutal economics of trying to feed AI’s appetite for power and cooling.

“We're going to use literally 10 terawatts of untapped wave power in a part of the ocean that no shipping is in. There's nothing there,” he said.

The Ocean-2 unit being towed to sea.

Panthalassa

Both space-based and sea-based data centers are attempts to claim free energy: sunlight in orbit, waves in the Southern Ocean. Schroepfer’s argument for the ocean version begins with logistics. Putting hardware at sea is hard. Putting hardware in orbit is the same problem with a massive rocket bill attached: SpaceX charges up to $90 million per launch.

“If you compare how much it costs to launch a ton into the ocean versus a ton into space, the answer is it’s a hundred times more expensive to launch it into space,” Shroepfer said. “So we've got a 100X cost advantage. … Let's say we're off by a factor of 1. We've still got a factor of 10X better in terms of cost.”

Panthalassa wants to deploy hundreds – eventually thousands – of free-floating data center buoys in the seas between the South Pole, South America and Africa, because it has the steadiest, most powerful waves and is far from shipping lanes. The energy they generate would be used on site, as transmitting electricity back to shore would be far too costly. If its data center plans work, Panthalassa’s next goal, starting in the early 2030s, is to also use its floating electricity nodes to generate fuels like carbon-free hydrogen or ammonia, using desalinated seawater and electrolyzers to split the H2O.

“We get that onto ships, and we bring it to land where it’s needed,” Sheldon-Coulson said. Making green hydrogen in this way, with no carbon emissions, would cost a fraction as much as doing so with solar energy, he said.

His case rests on the price and consistency of the power. “We have an enormously low cost of energy. Our cost of electrons is down around 2 cents per kilowatt hour, and we also have a very high capacity factor, which means we are on almost all the time, with over 90% capacity factor,” he said. “You can envision that what we're trying to build is this whole new energy ecosystem out there using super-abundant energy in the middle of the ocean, far from land, far from conflicting uses, to supply these two goods that humans really need: lots of computing and clean fuel.”

First, the machines have to survive the place they are meant to exploit. The Southern Ocean is particularly rough, owing to the absence of large land masses, allowing unimpeded buildup of the planet's most powerful wave system.

To help ensure that, Panthalassa’s nodes have relatively few moving parts to make energy and are built with the types of sturdy industrial materials heavy ships use: thick steel with coatings of zinc or aluminum. They should last at least 15 years, according to Sheldon-Coulson. “We plan to swap out the compute payload about every five years.”

The cooling story is simpler than the power story. And it is particularly compelling at the moment because data centers are turning cooling into a water, power, permitting and irate citizen problem on land. The average temperature in regions where Panthalassa plans to deploy its nodes is just 10 Celsius (50 Fahrenheit). At that temperature, you don’t need data center-specific chillers, cooling towers or fresh water.

 “It's a big bet, but it would be a place to put a lot of compute that no one would ever have to worry about.” 

“It’s much more efficient, much lower cost, much lower resource consumption and it provides a much better environment for the chips, which causes them to last longer as well,” Sheldon-Coulson said.

Cooling may prove to be the biggest challenge for Musk’s space-based data center concept, since satellites orbiting the earth operate in an environment in which temperatures fluctuate from as cold as -170 to 120 Celsius. And because they’re also in a vacuum, which prevents heat from being expelled through air cooling, they need sophisticated thermal systems to prevent damage to sensitive computing systems.

Launching the Ocean-2 floating data center prototype.

Panthalassa

Panthalassa’s CEO declined to make a direct cost comparison with Musk’s orbital concept for obvious reasons, but it’s easy to extrapolate from his remarks. “We will be significantly lower cost than data centers on land. And I think that means we will also be quite a bit better than orbital concepts, at least for the foreseeable future,” he said.

There’s still a real chance Panthalassa’s plan fails. Wave energy has a long history of eating elegant machines, and the Southern Ocean can be an unfriendly, downright malicious laboratory. But the upside potential is huge.

That’s what compelled Shroepfer to invest. “It's a big bet, but it would be a place to put a lot of compute that no one would ever have to worry about.”

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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about Sea Limited Sponsored ADR (SE - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Sea Limited currently has an average brokerage recommendation (ABR) of 1.48, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. An ABR of 1.48 approximates between Strong Buy and Buy.

Of the 20 recommendations that derive the current ABR, 15 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 75% and 10% of all recommendations.

Brokerage Recommendation Trends for SE

Check price target & stock forecast for Sea Limited here>>>

While the ABR calls for buying Sea Limited, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in SE?Looking at the earnings estimate revisions for Sea Limited, the Zacks Consensus Estimate for the current year has declined 1.9% over the past month to $4.43.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Sea Limited. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Sea Limited with a grain of salt.

Sea Limited is delivering strong growth and reinvesting to consolidate its moat. The stock is very attractively valued. E-commerce is growing at more than 30%.

Sea Limited Sponsored ADR (SE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned +0.5%, compared to the Zacks S&P 500 composite's +3.3% change. During this period, the Zacks Internet - Software industry, which Sea Limited falls in, has lost 5.8%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Sea Limited is expected to post earnings of $1.10 per share, indicating a change of +29.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.7% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $4.43 points to a change of +34.7% from the prior year. Over the last 30 days, this estimate has changed -1.9%.

For the next fiscal year, the consensus earnings estimate of $5.65 indicates a change of +27.5% from what Sea Limited is expected to report a year ago. Over the past month, the estimate has changed -2.6%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Sea Limited.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Sea Limited, the consensus sales estimate for the current quarter of $7.34 billion indicates a year-over-year change of +36.8%. For the current and next fiscal years, $30.72 billion and $37.61 billion estimates indicate +30.8% and +22.4% changes, respectively.

Last Reported Results and Surprise HistorySea Limited reported revenues of $7.33 billion in the last reported quarter, representing a year-over-year change of +43.2%. EPS of $0.84 for the same period compares with $0.86 a year ago.

Compared to the Zacks Consensus Estimate of $6.95 billion, the reported revenues represent a surprise of +5.5%. The EPS surprise was -12.5%.

Over the last four quarters, Sea Limited surpassed consensus EPS estimates times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Sea Limited is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Sea Limited. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

Sea Limited (SE 3.21%) is a triple threat in the digital economy. The Singapore-based company operates the largest e-commerce platform in Southeast Asia, a booming digital financial services business, and a game development studio that is responsible for some of the world's most successful mobile titles.

Sea stock is down 34% this year amid soaring oil prices, sparking concerns about a potential drop in consumer spending, but this could be a great long-term buying opportunity. In fact, the majority of the analysts tracked by The Wall Street Journal gave the stock a buy rating, and none recommend selling.

The most bullish analyst in the group predicts the stock could soar by a whopping 124% from here. I think that is realistic, which is why I bought Sea stock myself back in March. 

Image source: Getty Images.

Three spectacular growth stories under one roof Shopee is Sea Limited's hybrid consumer-to-consumer and business-to-consumer e-commerce platform. It serves most Southeast Asian countries, including Singapore, Indonesia, and Malaysia, and is also expanding into Latin America, with a fast-growing presence in Brazil. Shopee processed over $37 billion in orders during the first quarter of 2026 (ended March 31), up 30% from the year-ago period.

Then there's Monee, which is Sea's digital financial services platform. It lends money to Shopee sellers to help them grow their businesses, and it also provides buy-now, pay-later loans to consumers to boost their spending power. Monee had a record $9.9 billion in loans on its books at the end of the first quarter, a 71% year-over-year increase. Brazilian borrowers accounted for $1 billion of those loans, which was up by an eye-popping 250%.

Today's Change

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-3.21

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-2.75

Current Price

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82.94

Sea's third business segment is digital entertainment, led by the Garena game development studio. Garena's most successful mobile game is Free Fire, which has been downloaded around 2 billion times worldwide, but it also owns other blockbuster titles like Call of Duty: Mobile and EA Sports FC.

The studio had 666.5 million users across all titles during the first quarter, which was up modestly from the same quarter last year. But the percentage of users who made in-game purchases came in at 10.9%, the best result in five years.

Accelerating revenue growth Sea Limited generated $7.1 billion in total revenue during the first quarter, which represented a blistering year-over-year growth rate of 46.6%. It marked an acceleration from the company's 36.4% revenue growth for the whole of 2025, and all three business units contributed to the strong result.

Segment

Q1 2026 Revenue

Growth (YOY)

E-commerce (Shopee)

$5.1 billion

45.1%

Digital financial services (Monee)

$1.2 billion

57.8%

Digital entertainment (Garena)

$696.6 million

40.6%

Data source: Sea Limited. YOY = Year over year.

Sea also had a great quarter at the bottom line, delivering $1 billion in adjusted non-GAAP (generally accepted accounting principles) earnings before interest, tax, depreciation, and amortization (EBITDA) for the first time ever. Although Shopee accounted for most of the company's revenue, it contributed just $223.2 million in adjusted EBITDA because of its razor-thin margins. The platform aims to give consumers the lowest possible prices, which isn't a recipe for big profits.

Sea's largest contributor to adjusted EBITDA was Garena, which generated $573.6 million despite its comparatively small revenue base. This is one of the benefits of Sea's highly diversified business.

I agree with Wall Street's bullish consensus on Sea stock The Wall Street Journal tracks 30 analysts who cover Sea stock, and 23 have given it a buy rating. Two others are in the overweight (bullish) camp, while the remaining five recommend holding. Sea has attracted no sell ratings from this group of analysts.

The analysts have an average price target of $141.55, which suggests Sea stock could climb by 63% over the next 12 months or so. However, the Street-high target of $195 implies a potential upside of 124% instead.

I think both targets are achievable based on Sea's attractive valuation. Its stock is trading at a price-to-sales (P/S) ratio of just 2.1, which is well below its three-year average of 3.3. Moreover, Wall Street expects the company's annual revenue to grow to $29.8 billion in 2026 and $36.2 billion in 2027 (according to Yahoo! Finance), placing its stock at forward P/S ratios of 1.78 and 1.47, respectively.

Data by YCharts.

That means Sea stock would have to climb by 124% by the end of 2027 just to trade in line with its three-year average P/S ratio of 3.3. And if the company's revenue growth continues to accelerate, I think its valuation could rise even further.

But another reason I like Sea is its rock-solid balance sheet. At the end of the first quarter, the company had a whopping $11.1 billion in cash, cash equivalents, and short-term investments, with less than $800 million in debt. That gives management an incredible amount of flexibility to invest aggressively in growth, which could be very bullish for shareholders over the long term.