Core Insights - The article provides a comprehensive comparison of Amazon.com against its key competitors in the Broadline Retail industry, focusing on financial metrics, market position, and growth prospects to offer valuable insights for investors [1] Company Overview - Amazon is the leading online retailer, with retail-related revenue accounting for approximately 75% of total revenue, followed by Amazon Web Services (15%), advertising services (5% to 10%), and other segments [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 33.67, which is 0.79x lower than the industry average, indicating potential undervaluation [5] - The Price to Book (P/B) ratio of 7.06 is 1.1x higher than the industry average, suggesting the company might be overvalued based on its book value [5] - Amazon's Price to Sales (P/S) ratio of 3.55 is 1.56x the industry average, indicating potential overvaluation based on sales performance [5] - The Return on Equity (ROE) stands at 5.68%, which is 0.18% above the industry average, reflecting efficient use of equity to generate profits [5] - Amazon's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $36.6 billion, which is 5.91x above the industry average, indicating stronger profitability [5] - The gross profit of $86.89 billion is 5.23x above the industry average, demonstrating robust earnings from core operations [5] - Revenue growth of 13.33% surpasses the industry average of 10.76%, indicating strong sales expansion and market share gain [5] Debt-to-Equity Ratio Analysis - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a favorable balance between debt and equity compared to its top 4 peers, which is perceived positively by investors [10] - The low P/E ratio suggests Amazon.com may be undervalued compared to its peers, while the high P/B and P/S ratios indicate that the market values the company's assets and sales highly [8]

This company is a durable grower and would not be impacted by economic headwinds in the United States.Investing in growth stocks means you need a strong stomach. Volatility is the price of admission for owning huge winners, and investors should expect drawdowns every so often from even the best stocks in their portfolios. Broad market weakness can also present headwinds. Few stocks did well during the 2008 market crash, the spring of 2020, or in 2022 when the market indexes tumbled.The market indexes are be ...

Core Insights - The article provides a comprehensive analysis of Amazon.com in comparison to its major competitors in the Broadline Retail industry, focusing on financial metrics, market position, and growth prospects [1] Company Overview - Amazon is the leading online retailer, with retail-related revenue accounting for approximately 75% of total revenue, followed by Amazon Web Services (15%), advertising services (5% to 10%), and other segments [2] - International sales contribute 25% to 30% of Amazon's non-AWS revenue, with Germany, the United Kingdom, and Japan being the leading markets [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 35.28, which is 0.79x lower than the industry average, indicating potential undervaluation [5] - The Price to Book (P/B) ratio of 7.39 exceeds the industry average by 1.11x, suggesting the stock may be trading at a premium relative to its book value [5] - Amazon's Price to Sales (P/S) ratio of 3.72 is 1.62x the industry average, indicating it might be considered overvalued based on sales performance [5] - The Return on Equity (ROE) stands at 5.68%, which is 0.18% above the industry average, reflecting efficient use of equity to generate profits [5] - Amazon's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $36.6 billion, which is 5.91x above the industry average, indicating stronger profitability [5] - The gross profit of $86.89 billion is 5.24x above the industry average, showcasing higher earnings from core operations [5] - Revenue growth of 13.33% exceeds the industry average of 11.18%, indicating strong sales performance [5] Debt to Equity Ratio - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a lower reliance on debt financing compared to its top 4 peers, which suggests a more favorable balance between debt and equity [10] - The D/E ratio comparison allows for a concise evaluation of financial health and risk profile within the industry [8] Summary of Performance - Overall, Amazon.com demonstrates strong financial performance and growth potential, outperforming its industry peers in key metrics such as ROE, EBITDA, gross profit, and revenue growth [8]

Core Insights - Coupang has established itself as the leading player in the South Korean e-commerce market, drawing comparisons to Amazon due to its similar strategies and impressive results [2][4]. Group 1: Market Position and Customer Base - Coupang boasts nearly 24 million active customers, representing almost half of South Korea's population of approximately 52 million [5]. - The company offers a wide range of products with delivery options including same-day, early morning, and next-day delivery, enhancing customer convenience [5]. Group 2: Membership and Services - The Rocket Wow membership program provides additional benefits such as meal delivery, streaming content, and integrated payment systems, paralleling Amazon Prime [6]. Group 3: Logistics and Delivery Capabilities - Coupang claims to deliver 99% of Rocket Delivery orders within 24 hours, including fresh food deliveries by 7 a.m. the following day [7]. - The company is investing $2.2 billion to expand its logistics operations by 2027, aiming to achieve overnight delivery for approximately 88% of South Korea [8]. Group 4: Financial Performance and Profitability - After experiencing net losses in the first three years post-IPO, Coupang turned a profit in 2023, indicating a positive trend in profitability [10]. - Analysts expect this profitability trend to continue, especially as the company expands into Taiwan, where it reported triple-digit percentage revenue growth year over year in Q2 [12]. Group 5: Valuation and Growth Potential - Coupang's stock is currently trading at a premium valuation of 1.8 times trailing sales, above its three-year average [13]. - Management suggests that growth in Taiwan mirrors early growth in South Korea, indicating potential for reasonable pricing if similar expansion occurs [13].

Group 1 - The article discusses the author's active trading experience in various markets including stocks, FX, crypto, and commodities, highlighting over 15 years of market experience [1] - The author holds a master's degree in finance and combines microeconomic analysis of company financials with a macroeconomic perspective [1] Group 2 - The article includes a disclosure stating that the author has a beneficial long position in the shares of CPNG through stock ownership, options, or other derivatives [2] - It emphasizes that the article reflects the author's own opinions and is not influenced by compensation from any company mentioned [2]

Group 1 - The article discusses the author's active trading experience in various markets including stocks, FX, crypto, and commodities, highlighting over 15 years of market experience [1] - The author holds a master's degree in finance and combines microeconomic analysis of company financials with a macroeconomic perspective [1] Group 2 - The article includes a disclosure stating that the author has a beneficial long position in the shares of CPNG, indicating a personal investment interest [2] - It clarifies that the article reflects the author's own opinions and is not influenced by compensation from any company mentioned [2] Group 3 - The article contains a disclaimer from Seeking Alpha, emphasizing that past performance does not guarantee future results and that no specific investment advice is provided [3] - It notes that the views expressed may not represent those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]

Core Insights - Coupang is executing a successful business model similar to MercadoLibre, focusing on dominating its home market before pursuing international expansion [2][14] - The company has built a strong e-commerce presence in South Korea, achieving significant customer growth and profitability [3][4] Group 1: Market Position and Strategy - Coupang has established itself as the e-commerce leader in South Korea, with 23.9 million active customers, reflecting a 10% year-over-year increase [3] - The Product Commerce segment generated $7.3 billion in revenue with an adjusted EBITDA of $663 million, indicating a healthy 9% margin [4] - The company’s strategy is not solely focused on growth but emphasizes profitability, providing a stable foundation for future expansion [5] Group 2: Logistics and Competitive Advantage - Coupang's proprietary logistics network, Rocket Delivery, serves as a competitive moat, enabling efficient last-mile delivery [6][7] - The volume of same-day and next-morning deliveries grew by over 40% year-over-year, enhancing customer loyalty [8] - The Fulfillment and Logistics by Coupang (FLC) service allows third-party sellers to utilize its logistics network, creating a flywheel effect that attracts more customers [9] Group 3: Growth and Ecosystem Expansion - Coupang's Developing Offerings segment saw a 33% year-over-year revenue increase to $1.2 billion, driving the company's growth strategy [10] - The ecosystem includes high-growth ventures like Coupang Eats and Coupang Play, supported by a subscription model similar to Amazon Prime [11] - The company has successfully expanded into Taiwan, achieving triple-digit year-over-year revenue growth and a 54% surge in a single quarter [12][13]

Core Insights - Long-time investors in Amazon have seen significant wealth accumulation, and Coupang is emerging as a potential similar investment opportunity due to its rapid market share growth in South Korea's e-commerce sector [1][2] E-commerce Expansion - Coupang has developed an Amazon-like e-commerce service characterized by fast delivery and a wide selection, which has contributed to its increasing market share in South Korea [1] - The company offers free delivery by 7 a.m. for orders placed by midnight, enabled by an advanced and automated fulfillment network that includes drivers, robots, and warehouse automation [7] Cloud Computing and AI - Coupang is expanding its cloud computing division, rebranded as Coupang Intelligent Cloud, inspired by Amazon's success with AWS [4] - The South Korean government is investing $1 billion to enhance local data center infrastructure, positioning Coupang as a key player for potential contracts in this area [5] - The company is investing in AI tools to further enhance its e-commerce fulfillment network, which is expected to yield long-term cost savings and improve customer value [8] Financial Performance - Coupang's revenue grew by 19% year-over-year on a foreign currency neutral basis, with improving gross profit margins [9] - Since its public listing in 2021, Coupang's trailing 12-month revenue has increased by a cumulative 170% [9]

Core Viewpoint - Coupang, often referred to as the Amazon of South Korea, successfully had a lawsuit dismissed that accused it of defrauding shareholders during and after its 2021 IPO, which was the largest by a foreign company in over six years [1]. Group 1: Lawsuit Details - U.S. District Judge Vernon Broderick ruled that shareholders, led by New York City public pension funds, did not demonstrate that Coupang and its executives intended to defraud them or made materially misleading statements [2]. - Shareholders alleged that Coupang concealed unsafe working conditions, manipulated search results, had employees write favorable product reviews, and coerced suppliers to raise prices on competing platforms [3]. - The lawsuit claimed that Coupang's share price dropped by more than 50% within a year of the March 2021 IPO as negative information emerged, including investigations by South Korea's Fair Trade Commission and a fire at a fulfillment center [4]. Group 2: Court Ruling Insights - Judge Broderick stated that many of Coupang's statements regarding working conditions were too broad or aspirational to be considered misleading, and that statements about supplier relationships were not specific or were true [4]. - The judge also noted that shareholders did not provide specific details regarding the alleged price manipulation and acknowledged that the company had disclosed its practice of employees writing reviews [4]. - All claims against the IPO's underwriters, including Goldman Sachs and JPMorgan Chase, were also dismissed, with the lawsuit being dismissed with prejudice, preventing it from being refiled [5]. Group 3: Company Background - Coupang was founded in 2010 by South Korean billionaire Bom Kim and is currently headquartered in Seattle, having raised $4.6 billion in its IPO, marking the largest IPO by a foreign company on Wall Street since Alibaba's in September 2014 [6].

Core Viewpoint - Coupang, often referred to as the Amazon of South Korea, successfully had a lawsuit dismissed that accused it of defrauding shareholders during and after its 2021 IPO, which was the largest by a foreign company in over six years [1][5]. Group 1: Lawsuit Dismissal - U.S. District Judge Vernon Broderick ruled that shareholders failed to demonstrate that Coupang and its executives intended to defraud them or made materially misleading statements [2]. - The judge noted that the claims regarding unsafe working conditions and other allegations were either too broad, insufficiently specific, or amounted to "puffery" [4]. Group 2: Shareholder Allegations - Shareholders accused Coupang of various misconducts, including concealing unsafe working conditions, manipulating search results, and coercing suppliers to raise prices on rival platforms [3]. - The lawsuit claimed that Coupang's share price dropped by more than 50% within a year of the IPO due to revelations about these issues [4]. Group 3: IPO Details - Coupang raised $4.6 billion in its IPO, marking the largest IPO by a foreign company on Wall Street since Alibaba's in September 2014 [7]. - The IPO was backed by Softbank Group and was significant in the context of foreign company listings in the U.S. market [7]. Group 4: Company Background - Coupang was founded in 2010 by billionaire Bom Kim and was headquartered in Seoul at the time of its IPO, although it has since moved its headquarters to Seattle [6].