Growth stocks can help you compound your savings many times over. The important thing is to maintain a long-term perspective, because even the best companies will occasionally see their share prices fall. Three Fool.com contributors believe Shopify (SHOP -5.80%), e.l.f. Beauty (ELF -0.46%), and Coupang (CPNG -5.14%) are demonstrating the qualities of long-term winners.Don't have much money to invest? No problem. You can buy one share of all three stocks for about $200 right now. Here's why these stocks are ...

Group 1: Market Overview - The Nasdaq Composite recently entered correction territory, defined as a decline of at least 10% from recent highs, presenting potential investment opportunities for long-term investors [1] Group 2: Coupang - Coupang has established itself as a leader in South Korea's e-commerce market, focusing on densely populated cities and disciplined investments to enhance shareholder returns [3][5] - The company is expanding its service offerings, including food delivery (Coupang Eats), digital entertainment (Coupang Play), and payment services (Coupang Pay), with revenue from these services growing 124% year over year last quarter [4] - Coupang's gross profit increased by 43% year over year in 2024, outpacing its 24% revenue growth, with expectations for further margin expansion in 2025 through efficiency and automation [5] - The company is also expanding into international markets, with Taiwan's revenue growing 23% quarter over quarter and the launch of food delivery in Japan [6] - The stock trades at a price-to-sales multiple of 1.39, with shares 15% off recent highs, indicating potential for excellent returns as the business grows [7] Group 3: PDD Holdings - PDD Holdings is competing effectively with Alibaba in China's e-commerce sector, operating the Pinduoduo and Temu platforms, which are driving significant growth [8] - The company has focused on mobile shopping and a consumer-to-manufacturer model, resulting in revenue tripling over the last three years [9] - Pinduoduo's agricultural roots allow direct purchasing from farmers, enhancing growth and investment in quality goods, creating a positive growth cycle [10] - The platform's gamification strategy encourages social sharing and group shopping, distinguishing it from competitors [11] - PDD Holdings has seen its profit margin double to nearly 30% over the last three years, with analysts projecting an annualized earnings per share growth rate of 21% [12]

Market Overview - The Nasdaq-100 Index has experienced a significant decline, falling into a 13.2% correction, with many stocks down 20% or more [1][2] Company Analysis: Remitly - Remitly is a key player in the remittance market, currently facing a 27% drawdown [3] - The company reported a 33% year-over-year revenue growth, reaching $352 million, driven by a 32% increase in active customers to 7.8 million and a 39% growth in send volume to $15.4 billion [4] - Remitly holds a 3% market share in remittances and has seen its revenue outside the U.S. and Canada grow at a 100% year-over-year rate, reaching $297.1 million in 2024, accounting for 23.5% of total revenue [5] - The company has a market cap of $3.9 billion and generated $1.26 billion in revenue in 2024, with projections of reaching $2.5 billion by 2027 and a potential net income of $500 million, resulting in a price-to-earnings ratio below 8 [7] Company Analysis: Coupang - Coupang is a leading e-commerce platform in South Korea, comparable to Amazon in North America, with a focus on rapid shipping and low-cost delivery [8] - The company generated $30 billion in revenue in 2024, reflecting a 29% growth on a foreign currency-neutral basis [9] - Coupang is expanding its offerings with new initiatives such as food delivery, international expansion into Taiwan, video streaming, and luxury shopping through an acquisition of Farfetch [10] - The company is projected to generate $50 billion in annual revenue in the coming years, with a potential net income of $5 billion, while currently having a market cap below $40 billion [11]

Core Insights - Coupang's stock is experiencing an after-hours rise following strong fourth-quarter earnings results, contrasting with the decline in technology and AI stocks in February [1] - The company has surpassed $30 billion in annual revenue, indicating significant growth potential ahead [2] Financial Performance - For Q4 2024, Coupang reported a 21% year-over-year revenue increase to $8 billion, with growth observed on both organic and foreign currency neutral bases [3] - Gross profit grew by 48% year over year, with an adjusted gross margin of 29%, up from 25% a year ago, indicating profitable growth [4] - Despite a net income drop to $131 million due to major investments, Coupang generated $1 billion in free cash flow for the full year, showcasing a healthy financial position [5] Growth Segments - The Developing Offerings segment, which includes international e-commerce, financial technology, and food delivery, saw revenue growth exceeding 300% year over year, reaching $1.1 billion in quarterly revenue [6] - The core e-commerce marketplace in South Korea remains robust, with active customer spending increasing by 6% year over year on a foreign currency neutral basis [8] Customer Dynamics - Total active customers grew by 10% year over year to 22.8 million in Q4 2024, with new customers starting at higher spending levels, indicating potential for continued growth [8] Valuation and Future Outlook - Coupang aims for an adjusted profit margin of 10%, supported by efficient operations and strong free cash flow generation [9] - With the potential to exceed $50 billion in revenue in the coming years, the company could achieve over $5 billion in annual free cash flow at a 10% margin [10] - The current market cap of under $43 billion suggests that Coupang's stock is undervalued, especially given its growth trajectory and profitability metrics [11]

Shares of Coupang (CPNG 6.62%) were moving higher today after the technology company reported better-than-expected results in its fourth-quarter earnings report. As of 11:44 a.m. ET, the stock was up 4.6%. Coupang keeps growingCoupang -- which is headquartered in Seattle, operates in several countries, and generates sales primarily in South Korea -- has embraced an Amazon-like business model, with e-commerce anchoring a number of satellite businesses. It said that revenue in the quarter rose 21%, or 28% on ...

The e-commerce platform operator came up a bit short on revenue in the fourth quarter, but beat expectations on earnings per share.Coupang (CPNG 4.43%), a U.S.-based e-commerce powerhouse that largely does business in South Korea, disclosed its fourth-quarter results on Feb. 25. The most noteworthy metric was its earnings per share (EPS) of $0.08, which significantly outperformed the expected $0.01 with some help from a one-time insurance gain. However, revenues of $7.965 billion fell short of projections o ...

Financial Data and Key Metrics Changes - Net revenues grew by nearly $6 billion or 23% in constant currency, excluding Farfetch [6] - Gross profit increased by 29%, excluding Farfetch and a fire insurance gain recorded in Q4 [7] - Adjusted EBITDA reached $1.4 billion, expanding margins to 4.5%, with over $1 billion in free cash flow [7][44] - Total net revenues grew 21% year-over-year or 14% excluding Farfetch, with constant currency growth at 28% [32] - Consolidated gross profit grew 48% or 29% excluding Farfetch and the fire insurance gain [33] - Adjusted EBITDA margin for the quarter was 5.3%, up 80 basis points year-over-year [44] Business Line Data and Key Metrics Changes - Product Commerce segment saw revenue growth of 9% year-over-year, with a gross profit margin of 32.7% [36][40] - Developing Offerings segment revenues grew roughly 300% year-over-year, with a 124% increase excluding Farfetch [38] - Average spend levels per active customer grew by 6% year-over-year [37] Market Data and Key Metrics Changes - The Korean won weakened significantly against the U.S. dollar, impacting revenue comparisons [32] - The company continues to represent a small percentage of the market's total retail spend, indicating significant growth opportunities ahead [35] Company Strategy and Development Direction - The company focuses on customer experience and operational excellence as core principles driving growth [9][17] - Plans to expand margins in 2025 through automation, technology utilization, and supply chain optimization [25] - The strategy includes disciplined investments in technology and logistics infrastructure to enhance customer experience [17][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainty in the macro environment but remains confident in growth due to deep customer engagement [56][58] - The company expects Q1 growth to remain consistent with Q4, excluding Farfetch [59] - Anticipates constant currency consolidated growth rates for 2025 to be about 20% year-over-year [49] Other Important Information - The company reported a non-recurring insurance gain of $175 million related to a fire incident, impacting financial results [31] - Farfetch's losses have shrunk to a breakeven run rate, with significant improvements in operational efficiency [23] Q&A Session Summary Question: Impact of domestic e-commerce market slowdown on GMV growth and 2025 outlook - Management acknowledges macro uncertainty but emphasizes strong customer engagement driving growth [56][58] Question: FLC business margin profile trend for 2025 - Management indicates FLC is growing at a high multiple of overall business and focuses on optimizing service levels [60] Question: Impact of Eats platform fee adjustments - Management highlights commitment to low fees for merchants and free delivery for customers, aiming to improve operations [67] Question: Future of tech spending and its benefits - Management expects OG&A expenses to decline over time as a percentage of revenue, driven by tech investments [69] Question: Strategy for Farfetch post-restructuring - Management plans to leverage resources across the company and focus on operational improvements for sustainable growth [78] Question: CapEx investment outlook - Management indicates CapEx levels will remain consistent as a percentage of revenue, focusing on growth in Korea and Taiwan [80] Question: Developing offerings investment guidance - Management confirms investments in Developing Offerings will be between $650 million and $750 million, reflecting confidence in growth opportunities [93]

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Financial Performance and Risks - The company reported a history of net losses, with losses of $(0.1) billion in 2022 and $(1.5) billion in 2021, and an accumulated deficit of $(4.2) billion as of December 31, 2024[58]. - The company has experienced fluctuations in revenue and results of operations, making future performance difficult to predict[53]. - The company acknowledges that its growth may not be sustainable and that future revenue growth rates could decline[53]. - Increased costs related to food, energy, labor, and other factors may materially impact the company's operating costs and financial performance[136]. - The company may require additional capital for growth, which might not be available on favorable terms, potentially impairing business development[158]. - The company is subject to various legal proceedings, including claims and investigations related to employment, labor, and intellectual property, which could result in significant liabilities and expenses[226]. Competition and Market Position - The company faces intense competition and must innovate to avoid losing market share, which could adversely affect its financial performance[51]. - The company faces intense competition from both online and offline retailers, which may impact its market position and operational results[88]. - Competitors may leverage greater resources for marketing and innovation, increasing competitive pressures on the company[90]. - The company faces competitive pressures from rivals with advantages such as longer operating histories and better brand recognition, which could adversely affect its business and financial condition[94]. Growth and Expansion Strategies - The company plans to continue investing significantly to increase its customer base and expand its offerings, which may lead to increased operating expenses[59]. - The company intends to expand its product offerings and enhance customer satisfaction through its Rocket WOW membership program[66]. - The company has expanded its offerings into new categories and geographies, including consumer electronics and luxury products, which may expose it to new risks and challenges[99]. - The company expects continued investment in Farfetch's operating expenses and headcount, which may not guarantee success[71]. - The company has experienced significant growth and plans to continue increasing its employee headcount to support this growth[74]. Operational Challenges and Risks - The acquisition of Farfetch introduces risks related to integration and operations in new geographic areas, which may impact the company's financial condition[51]. - The company may encounter challenges in securing suitable facilities for fulfillment operations, which could adversely affect its business[84]. - The company must effectively manage growth and operational challenges to avoid negatively impacting its financial condition and results of operations[79]. - The company may face challenges in integrating acquired businesses, which could disrupt operations and divert management attention[123]. - Service interruptions and delivery delays caused by external factors could negatively affect customer satisfaction and the company's financial condition[140]. Regulatory and Compliance Issues - The company is subject to regulatory risks associated with Coupang Pay, which could lead to fines, penalties, and operational restrictions if compliance is not maintained[135]. - The company is subject to heightened governmental scrutiny, which may increase the risk of litigation and adversely affect its business[170]. - The company is under scrutiny by the Korean Fair Trade Commission (KFTC) regarding transactions with subsidiaries, which could lead to fines or other actions[177]. - The company is subject to increased legal, accounting, and financial compliance costs as a public reporting company, which may strain resources and divert management's attention[166]. - The company may incur substantial costs to comply with privacy and cybersecurity laws, which could impact its growth strategy and customer retention[223]. Supply Chain and Inventory Management - The company faces significant inventory risks due to seasonality, new product launches, and changes in customer demand, which could materially impact operations[117]. - Seasonal fluctuations in sales are expected, particularly during holidays like Chuseok and Lunar New Year, leading to variable quarterly results and potential inventory markdowns[118]. - The company relies on various third-party providers for essential services, and any failure in these services could materially affect business operations[149]. - The company depends on its merchants to provide a high-quality experience, and any negative customer experiences could harm its reputation and ability to attract customers[137]. Technology and Innovation - The company is investing significantly in technology and research and development to enhance operations and explore new growth strategies, but these investments may not yield immediate financial returns[109]. - The company utilizes AI and machine learning technologies, which present risks such as operational disruptions and data security breaches that could adversely affect its business[246]. - The evolving regulatory landscape surrounding AI and machine learning may require significant compliance costs and changes to business practices[246]. Economic and Geopolitical Factors - The Korean economy's performance significantly impacts Coupang Corp.'s revenue, with a substantial majority generated from sales in Korea, making it vulnerable to economic downturns and uncertainties[184]. - Potential adverse developments in Korea's economy include declines in consumer disposable income, political instability, and increased household debt, which could negatively affect customer spending[185]. - Tensions with North Korea pose a risk to Coupang Corp.'s business, financial condition, and stock price due to potential military hostilities and geopolitical instability[189]. Legal and Taxation Issues - The company is subject to taxes in multiple jurisdictions including the United States, Korea, China, Taiwan, and the United Kingdom, complicating tax liabilities[249]. - The company may face challenges in enforcing judgments obtained in courts outside Korea, complicating legal proceedings for investors[198]. - The company faces risks related to compliance with anti-corruption and anti-money laundering laws, which could lead to substantial civil and criminal penalties[229].

Financial Performance - Total net revenues for Q4 2024 were $8.0 billion, up 21% YoY and 28% on an FX-neutral basis[5] - Total net revenues for FY2024 were $30.3 billion, increasing 24% YoY on a reported basis and 29% YoY on an FX-neutral basis[5] - Total net revenues for the year ended December 31, 2024, were $30,268 million, up 24.5% from $24,383 million in 2023[23] - Total net revenues for Q4 2024 reached $7,965 million, representing a year-over-year growth of 21%[45] - Total net revenues for Q4 2024 were $8,395 million, representing a year-over-year growth of 28%[38] - Total net revenues for the year ended December 31, 2024, were $31,552 million, a 29% increase compared to 2023[38] - Total net revenues excluding Farfetch for Q4 2024 were $7,494 million, compared to $6,561 million in Q4 2023, indicating a growth of 14.2%[44] - Total net revenues excluding Farfetch for the year ended December 31, 2024, were $28,610 million, a 17% increase compared to 2023[45] Segment Performance - Product Commerce segment net revenues reached $6.9 billion, up 9% YoY on a reported basis and 16% YoY on an FX-neutral basis[9] - Developing Offerings segment net revenues were $1.1 billion, up 296% YoY on a reported basis and 308% YoY on an FX-neutral basis[5] - Product Commerce net revenues reached $7,280 million in Q4 2024, with a year-over-year growth of 16%[38] - Developing Offerings net revenues for Q4 2024 were $1,115 million, showing a significant year-over-year growth of 308%[38] - Developing Offerings net revenues excluding Farfetch for the year ended December 31, 2024, were $1,911 million, a 142% increase from 2023[47] Profitability Metrics - Gross profit for Q4 2024 increased 48% YoY to $2.5 billion, with a gross profit margin of 31.3%, an improvement of 570 bps YoY[5] - Net income attributable to Coupang stockholders was $156 million, a decrease of $876 million from last year due to a non-cash tax benefit in Q4 2023[5] - Net income attributable to Coupang shareholders for Q4 2024 was $156 million, a decrease of 84.9% compared to $1,032 million in Q4 2023[43] - Basic earnings per share for Q4 2024 was $0.09, down from $0.58 in Q4 2023[23] - Adjusted EBITDA for Q4 2024 was $421 million, with a margin of 5.3%, up 80 bps YoY[5] - Adjusted EBITDA for the year ended December 31, 2024, was $1,375 million, up 28.1% from $1,074 million in 2023, with an adjusted EBITDA margin of 4.5%[1] - Adjusted net income attributable to Coupang stockholders excluding the impact from the FC Fire insurance gain was $24 million for Q4 2024, down from $1,032 million in Q4 2023[43] Cash Flow and Assets - Free cash flow for the full year was $1.0 billion, a decrease of 43% YoY[7] - Free cash flow for Q4 2024 was $463 million, an increase from $382 million in Q4 2023[39] - Cash and cash equivalents as of December 31, 2024, totaled $5,879 million, an increase from $5,243 million in 2023[25] - Total assets increased to $15,344 million as of December 31, 2024, compared to $13,346 million in 2023[25] - Net cash provided by operating activities for 2024 was $1,886 million, down from $2,652 million in 2023[27] - The company reported a net cash provided by operating activities of $676 million for Q4 2024, compared to $609 million in Q4 2023[39] Liabilities and Noncontrolling Interests - Coupang's total liabilities increased to $11,167 million as of December 31, 2024, from $9,242 million in 2023[25] - The company reported a net loss attributable to noncontrolling interests of $25 million in Q4 2024[23] - The company reported a net loss attributable to noncontrolling interests of $25 million for Q4 2024, compared to no loss in Q4 2023[1] Other Notable Points - The acquisition of Farfetch was completed at the end of January 2024, impacting the Developing Offerings segment results[12] - The company emphasizes the importance of constant currency revenue for understanding period-to-period comparisons, particularly due to foreign exchange rate effects[35] - Adjusted gross profit for Q4 2024 was $2,491 million, with an adjusted gross profit margin of 29.0%[45] - The gross profit margin excluding the impact from the FC Fire insurance gain was 29.8% for Q4 2024, up from 25.6% in Q4 2023[45] - Adjusted basic earnings per share for Q4 2024 was $0.01, compared to $0.58 in Q4 2023, reflecting the impact of the FC Fire insurance gain[42]