Investors should prioritize Sea Limited (SE) as a top pick, as it is currently "dirt cheap" at 16x EBITDA with projected 28% revenue growth and regional dominance in Southeast Asia. MercadoLibre (MELI) offers a high-conviction entry point following a recent price drop, trading at 22x EBITDA while maintaining a robust 32% growth rate in Latin America. For those with a higher risk tolerance, Kaspi.kz (KSPI) presents a massive value opportunity at just 3x EBITDA with an elite Rule of 40 score of 89. Amazon (AMZN) remains a core holding for AI exposure through its stake in Anthropic and its undervalued cloud and satellite segments. Conversely, investors should avoid Shopify (SHOP) due to its excessive valuation and Coupang (CPNG) because of its sluggish 12% growth rate.

Sea Limited (SE)

• Sea Limited is a leading e-commerce and digital services player in Southeast Asia, operating through three main divisions: Shopee (e-commerce), Garena (gaming), and SeaMoney (digital finance). • The company is currently trading at what the analyst considers a "dirt cheap" valuation of 16x trailing 12-month adjusted EBITDA. • Shopee is a dominant force in Indonesia and Southeast Asia, successfully competing against Alibaba-backed brands and Tokopedia. • The gaming division (Garena) is seeing a resurgence, led by the popular mobile game Free Fire, which has historically been one of the most downloaded games globally. • Financial metrics are strong: 28% projected revenue growth for the next 12 months, 45% gross margins, and a 10% EBITDA margin.

Takeaways

• Bullish Sentiment: The analyst views the current valuation as "making absolutely no sense" given the high growth and market leadership. • Rule of 40: The company nearly hits the "Rule of 40" (a metric where growth rate + profit margin should exceed 40%), signaling a healthy balance of growth and profitability. • Top Pick: If forced to choose between the top e-commerce players, the analyst identified SE as the preferred pick due to its relative valuation and regional dominance.

MercadoLibre (MELI)

• Often referred to as the "Amazon of Latin America," MELI has a massive presence in Brazil, Argentina, and other Latin American countries. • The stock has experienced a significant price drop since October 2025, which the analyst attributes to "market madness" rather than fundamental business issues. • It maintains a 51% gross margin and a 14% EBITDA margin, trading at an EV/Adjusted EBITDA of 22x. • Analysts project a 32% revenue growth rate for the next 12 months.

Takeaways

• Investment Opportunity: The analyst categorizes MELI as "dirt cheap" for a high-quality company with a proven track record of execution and management. • Resilience: Despite competition from Amazon and Sea Limited in the region, MELI is noted for competing effectively and maintaining its market position.

Kaspi.kz (KSPI)

• Kaspi is a "super app" dominant in Kazakhstan, holding an estimated 90% market share. It integrates banking, e-commerce, payments, and even government services (like marriage licenses). • It is expanding internationally, recently acquiring Hepsiburada (a Turkish e-commerce platform) and Rabobank in Turkey. • The valuation is described as "complete nonsense" at only 3x Enterprise Value to Adjusted EBITDA. • It boasts an extraordinary Rule of 40 score of 89, indicating hyper-efficiency and profitability.

Takeaways

• High Risk/High Reward: The analyst acknowledges the risks associated with ADRs (American Depositary Receipts), different accounting standards, and regional geopolitics. • Geopolitical Play: The move into Turkey is seen as a strategic win, as Turkey could become a safer regional hub for travel and commerce. • Action: For investors willing to overlook regional risks, KSPI is presented as being in a "league of its own" regarding profitability.

Shopify (SHOP)

• Shopify is the leading e-commerce website builder, powering major brands like Tesla’s merch store, FIGS, and the Kardashian brands. • Despite a 27% growth rate, the analyst is bearish on the stock due to its "nosebleed" valuation. • The analyst notes that Canadian "jewel" stocks like SHOP often trade at a premium because domestic capital is concentrated in a few top-tier local companies.

Takeaways

• Overvalued: The analyst avoids SHOP because its valuation is roughly double that of Amazon, despite Amazon having more diverse revenue streams. • Avoidance: It does not meet the analyst's criteria for "cheap" (which requires an EV/GP/Growth metric under 0.5; Shopify is currently at 1.0).

Amazon (AMZN)

• The analyst suggests Amazon cannot be judged solely as an e-commerce company because it is a complex "hyperscaler" with a "diversification discount." • Key value drivers mentioned include AWS (cloud), its 27% stake in Anthropic (AI), and Project Kuiper/Amazon Leo (satellite internet). • Amazon is currently trading at a valuation significantly lower than Shopify when looking at e-commerce metrics.

Takeaways

• AI Play: Amazon's investment in Anthropic is highlighted as a major catalyst, positioning them as a primary winner in the AI field alongside Microsoft. • Sum-of-the-Parts: The analyst believes if Amazon were broken up, its individual components would be worth much more than the current consolidated stock price.

Coupang (CPNG)

• Coupang is a major e-commerce player in South Korea, often compared to the other regional giants. • The analyst is unenthusiastic about the stock, citing a smaller addressable market in Korea compared to Southeast Asia or Latin America. • Financials are less attractive: 12% growth rate (which the analyst considers too low) and a Rule of 40 score of only 15.

Takeaways

• Underperformer: Despite the stock price dropping to 2022 levels, the analyst prefers Sea Limited over Coupang due to better growth prospects and margins. • Growth Snobbery: The analyst explicitly avoids stocks growing less than the money supply, which currently disqualifies CPNG.