Why Coupang Stock Is Sinking Today

Core Viewpoint - Coupang's shares have declined by 6% despite surpassing sales expectations and slightly exceeding earnings per share guidance, indicating that the market had high expectations that were not fully met [1][2]. Financial Performance - Coupang reported an 18% increase in sales, a 20% rise in gross profit, and a 39% growth in free cash flow during the third quarter, demonstrating strong operational performance and improving margins [3][8]. - The company saw a 10% growth in new customer acquisition and a 7% increase in average revenue per user, indicating a balanced growth strategy [3][8]. Market Expansion - Coupang's operations in Taiwan have shown a significant acceleration in sales growth, reaching triple-digit growth rates, which is promising for the company's long-term potential [4][5]. - The CEO highlighted that customer adoption levels in Taiwan are comparable to those experienced in South Korea during the early stages of their retail business, reinforcing confidence in future growth [5]. Valuation Perspective - While Coupang is valued at $59 billion and may not be considered "cheap," the potential for growth in Taiwan and other markets contributes to a positive outlook for shareholders [6].