Sundry Photography Thesis Coupang, Inc. (NYSE:CPNG) was incorporated in 2010 and is an e-commerce company headquartered in Seattle, WA. CPNG’s IPO date was March 11, 2021, and it began trading at $63.50 per stock, giving CPNG a market cap of $102.2. As of April 3, 2024, the stock price was $18.56 and is down over 70% from all-time highs, mainly attributed to high losses and low margins. But, I think things are changing. With strong year-over-year active customer growth, CPNG’s revenue has doubled, and, ...

Sundry Photography Introduction In my previous article written on December 11th, I had a buy rating on Coupang (NYSE:CPNG). At the time, I viewed the company's growing positive momentum favorably. It was becoming clearer that Coupang had taken the lead over numerous other e-commerce competitors in Korea. The company's financial metrics involving both top and bottom lines were seeing significant growth. Further, I viewed the Korean macroeconomic condition favorably believing that it could provide Coupang wit ...

Sundry Photography Recap In our last article on Coupang (NYSE:CPNG), we highlighted Coupang's strong position in logistics as a key factor in driving its market share growth. Additionally, we observed robust growth in Taiwan, surpassing the growth seen in South Korea post-Rocket launch. Yet, we believe that Coupang's stock was trading within its fair value at $18 per share, which was derived from a 10-year DCF valuation model (12% WACC, 3.5% terminal growth). Data by YCharts Since our article was publis ...

Hypergrowth stocks provide some exciting opportunities for quick returns. Because growth stocks have a high-beta, opportunities are created in a correction or when the growth story faces near term headwinds.Growth stocks with weak fundamentals might take time to recover. However, fundamentally strong growth stocks are unlikely to trade at a valuation gap for an extended period. With the possibility of rate cuts in the second half of 2024, there is a strong case for a rally in high-beta stocks.This column di ...

Shares of South Korean e-commerce leader Coupang (CPNG 0.38%) rallied 32.3% in February, according to data from S&P Global Market Intelligence.Coupang stock entered February on a low note, having dropped since the start of 2024. However, the company's fourth-quarter earnings brightened the mood, with the e-commerce company showing impressive growth and profit expansion.Expectations-trouncing resultsIn the fourth quarter, Coupang delivered 23% revenue growth, along with adjusted (non-GAAP) earnings per share ...

Week to date, shares of Coupang (CPNG 1.16%) were up 14% as of 10:38 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence. Korea's largest e-commerce company reported another quarter of accelerating revenue growth that sent the shares higher, but its relatively small footprint of the retail market spells more growth.Coupang reports fourth consecutive quarter of accelerating growthLow growth expectations can set up a stock to soar when a company's financial results are better than ...

In this video, I will talk about Coupang's (CPNG 6.60%) recent earnings report, comments from management on the acquisition of Farfetch, and why I feel this stock is still flying under the radar while the underlying business fundamentals have improved significantly.*Stock prices used were from the trading day of Feb. 28, 2024. The video was published on Feb. 28, 2024. ...

Coupang (NYSE:CPNG) stock is on the rise Wednesday following the release of the e-commerce company’s earnings report for the fourth quarter of 2023.The good news for investors in CPNG stock starts with its adjusted earnings per share of 8 cents. That beats out Wall Street’s adjusted EPS estimate of 6 cents for the quarter. It’s also an improvement over the 3 cents per share from the same period of the year prior.Another boon for CPNG stock is the company’s revenue of $6.56 billion. This also comes in above ...

Financial Data and Key Metrics Changes - Total net revenues reached $6.6 billion, growing 23% year-over-year or 20% in constant currency [28] - Adjusted EBITDA for Q4 was $294 million, with a full-year adjusted EBITDA of $1.1 billion, reflecting a Q4 adjusted EBITDA margin of 4.5%, a 50 basis point improvement year-over-year [32][41] - Free cash flow for 2023 totaled $1.8 billion, with a cash balance exceeding $5.5 billion [14][42] Business Line Data and Key Metrics Changes - Product commerce segment revenues grew 21% on a reported basis and 18% in constant currency, driven by deeper spend penetration and higher customer spend levels [37] - Developing offerings segment revenue grew 105% year-over-year on a reported basis and 102% in constant currency, indicating strong potential in this area [30] - Adjusted EBITDA for product commerce improved nearly 70% year-over-year, reaching $444 million with a margin of 7.1% [32] Market Data and Key Metrics Changes - Active customers grew by 16% year-over-year in Q4, with a total of 21 million active customers [35] - The company holds a small share of the projected $560 billion retail market in Korea, indicating significant growth potential [37][57] Company Strategy and Development Direction - The company remains focused on expanding its market share in Korea and Taiwan, emphasizing customer experience and operational excellence [27][57] - Investments in logistics and technology, including AI, are expected to drive margin expansion and operational efficiencies [50][38] - The acquisition of Farfetch is seen as a strategic opportunity to enhance customer experience in the luxury segment, although the company emphasizes organic growth as its primary strategy [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, expecting consistent growth rates aligned with historical averages [43] - The company anticipates adjusted EBITDA losses in developing offerings of approximately $650 million in 2024, excluding losses related to Farfetch [43] - Management highlighted the importance of continuously improving customer experience to maintain competitive advantage in a dynamic retail environment [57] Other Important Information - The company reported a non-recurring adjustment of $895 million related to tax reserves, resulting in a net income of $1 billion for the quarter [40] - The company is committed to maintaining a disciplined investment approach, focusing on opportunities that demonstrate potential for significant returns [52] Q&A Session Summary Question: Product commerce strategy and margin outlook for 2024 - Management confirmed that the strategy to increase selection and merchant acquisition will continue, with expectations for margin improvements over time [49][50] Question: Developing offerings guidance and breakdown - The $650 million guidance for developing offerings does not include Farfetch, with most investments expected in Taiwan [51] Question: Farfetch acquisition attractiveness and capital allocation - Management noted the luxury market's potential and the strategic value of Farfetch, emphasizing that M&A is not the primary strategy [56] Question: Competition and user attrition - Management stated that competition remains strong, but the focus will be on improving customer experience to retain loyalty [57] Question: Taiwan market signals and investment visualization - Management highlighted strong momentum in Taiwan, with active customers and revenues doubling in the last two quarters [66]

SEATTLE--(BUSINESS WIRE)--Coupang, Inc. (NYSE: CPNG) today announced financial results for its fourth quarter ended December 31, 2023. Q4 2023 Key Financial and Operational Highlights Net revenues were $6.6 billion, up 23% YoY on a reported basis and 20% YoY on an FX-neutral basis. The net revenues growth rate would have been an estimated 940 bps higher than the 20% growth without the accounting change in FLC revenue, which we began recording on a net basis starting in Q2 2023. Gross profit increas ...