Is Coupang Stock a Can't-Miss Opportunity Below $30?

Core Insights - Coupang is experiencing steady growth and is positioned as a leading player in South Korea's online shopping market, drawing comparisons to Amazon's business model [1][2] - The company has a robust fulfillment infrastructure that supports rapid delivery, contributing to its $30 billion in trailing revenue [4] - Coupang's subscription service, Rocket Wow, has shown resilience in customer growth despite a recent price increase, indicating strong customer loyalty [5][6] Business Model and Performance - Coupang's fulfillment model allows for same-day delivery, including fresh groceries, enhancing customer satisfaction and operational efficiency [4] - The Rocket Wow subscription service generates significant recurring revenue, with an estimated 10 million subscribers contributing approximately $684 million annually [6] - The company's annual revenue reached $32.3 billion, growing 19% year over year, with projections to approach $40 billion in the next 12 months [12] Market Expansion - Coupang is expanding its market presence by entering Taiwan, where it has seen rapid revenue growth of 54% quarter over quarter and over 100% annually [9] - The limited size of the South Korean market poses a challenge, but international expansion could mitigate this risk and enhance growth potential [8] Profitability Outlook - Coupang's core commerce operations in South Korea have a profit margin of 9%, indicating potential for future profitability [13] - Long-term projections suggest that profit margins could expand to 10% or higher, with potential earnings power reaching $4 billion based on $40 billion in revenue [14] - The current market capitalization of $52 billion presents a favorable price-to-earnings ratio of 13, suggesting that Coupang stock may be undervalued [11][14] Investment Consideration - Coupang stock is viewed as a potential buy below or above $30, appealing to long-term investors seeking growth opportunities [15]