Sea (SE) surged 244.3% in Druckenmiller’s portfolio to 944k shares worth $120M, now constituting 2.85% of his holdings, as the company trades at just 10x free cash flow despite 17.2% three-year revenue growth and 10x profit expansion in 2025. Google (GOOG) and Natera (NTRA) round out his major positions, with NTRA delivering a 440% return from 2023 to 2025 after Druckenmiller initiated his position when it was treading water.
Druckenmiller is accumulating Sea after the stock fell 77% from $300 peaks despite strong fundamentals, with the market overreacting to a Q1 earnings miss where net income came in 3.2% below estimates, creating what he views as a solid entry point before analysts project 22% EPS growth in 2026 and potential margin expansion to 15% by 2030.
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Stanley Druckenmiller is a legendary Wall Street investor, and there are very few investors on Wall Street with such an exceptional record. He’s loading up on a stock called Sea (NYSE:SE), which is down significantly and could surge back. But before we look into it, let’s have a refresher on who Druckenmiller is.
Druckenmiller founded Duquesne Capital Management in 1981, which went on to deliver average annual returns of 30% without a single losing year. Every other major investor you know today has had at least some losses, but not Druckenmiller.
He has since closed Duquesne due to the sheer weight of all the capital he was dealing with and is instead investing with just his own capital. This does not mean that all his moves are unknown to the market. Druckenmiller’s trades are still quite large, so these can be tracked publicly. And anyone tracking them would know that he hasn’t lost his magic.
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He was up 14.6% in Q4 2025 alone, and this was after massive gains in earlier years.
Druckenmiller’s investing style has been dynamic from the get-go, and he’s constantly shuffling stocks. By the time you catch wind of a massive buy, that stock is likely up significantly, and he may have moved on to another stock by then.
The best way to “copy” his trades is to look into the stocks that are yet to recover.
SE stock looks like the perfect stock to look into right now. It has the perfect setup for a recovery due to fading headwinds and multiple tailwinds coming together that may help it turn a corner.
It is a Singapore-based company that has an e-commerce presence across Southeast Asia and also has a gaming arm. The e-commerce business lost its momentum after the post-COVID boom slowed down.
His stake in Sea is now nearly as much as his Google (NASDAQ:GOOG) stake after he increased his holdings here by 244.3% against the last quarter. He now owns 944k shares, worth $120 million, and it constitutes 2.85% of his portfolio.
This number may look small today, but that’s what these small stakes usually look like before they start ballooning.
For example, his largest holding today is Natera (NASDAQ:NTRA). He’s in the phase of shedding his gains here, but NTRA stock constituted a small portion of Druckenmiller’s portfolio before it had a 440% run from 2023 to 2025. Druckenmiller first started buying NTRA stock in Q3 2022 when it was treading water.
With Sea, Druckenmiller’s history goes back to 2021. He has made multiple buys and sells over the course of the past 5 years, some within just one quarter.
SE stock fell significantly in early March after net income came in at $410.9 million against the $442 million analyst estimate. There’s no sugarcoating the fact that Druckenmiller is sitting on a loss. However, the market may be overdoing it, and this gives you a solid entry point.
SE stock was an earshot distance from $200 late last year. It traded well above $300 back in 2021. This is despite the fact that the 3-year revenue growth was at 17.2% annually, with the coming three years set to see ~22% annual sales growth.
The company also turned profitable in 2023 and has grown those profits by 10x in 2025.
This is not a business that should be down 77% in the stock market. But it is down simply due to the market consistently taking things too far in both directions. I now believe the stock is significantly undervalued after the recent selloffs.
Analysts see 2026 EPS growth at 22%, with 2027 EPS growth accelerating to nearly 30%. Revenue growth is expected to be 26.5% in 2026 and 22% in 2027. You’re paying just 21 times 2026 earnings and 1.7 times 2026 sales. The net margin is still less than 7%. Margins above 15% are possible by 2030 and could triple or quadruple earnings once you take the revenue growth into account by then.
Sea’s strong suit is not net income, but rather free cash flow. The company has stockpiled cash.
Paying off the debt and stockpiling cash doesn’t bode well for net income, but it does make the stock look a lot more buyable once you look at the cash flow. This stock is trading at just 10 times FCF, which is a retail-level premium and is not justified for a business growing at 20%-plus annually. I thus expect multibagger gains in the coming years.
Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.
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