The Motley Fool·2025-10-08 00:30Core Insights - Coupang is positioned as a strong growth opportunity in the AI and e-commerce sectors, with a market cap under $100 billion, making it a compelling alternative to larger tech companies like Nvidia and Amazon [2][10] Company Overview - Coupang has established itself as a leading e-commerce platform in South Korea, offering fast delivery and a wide range of retail services that outpace local competitors [3][4] - The company has 23.9 million active customers in South Korea, reflecting significant market penetration for a relatively young brand [4] Growth and Expansion - Coupang's revenue grew 19% year-over-year to $8.5 billion, surpassing Amazon's 10% growth in retail operations [6] - The company is expanding into new markets, including Taiwan, where it has achieved over 100% year-over-year revenue growth [6] - Coupang has also revamped its cloud computing service, Coupang Intelligent Cloud, to capitalize on the growing demand for AI workloads in Korea [5] Financial Performance - Coupang's market cap is $59 billion, with trailing revenue of $32 billion, indicating a favorable growth phase compared to larger competitors [8][11] - The company is expected to see profit margins expand to 10% or higher as it matures, supported by investments in automation and AI [11] Valuation Comparison - Coupang's valuation is more attractive compared to other AI stocks like Nvidia and Palantir, which have significantly higher market caps relative to their revenue [7][8] - The potential for efficiency gains from automation and AI investments at fulfillment centers is expected to enhance profit margins further [8]