Shares of technology company Coupang (CPNG -1.17%) have been under pressure over the past few months. The company is based in the United States, but makes money serving consumers in South Korea and increasingly Taiwan, so Coupang is insulated from the direct effect of President Donald Trump's new import tariffs. Let's weigh this company's strengths against its weaknesses to see if it could be a good stock to buy at its recently beaten-down price. Why Coupang stock fell What's been driving Coupang stock down ...

Group 1: Strategy (MSTR) - Strategy, formerly known as MicroStrategy, has a current market cap of $75 billion, up from $3 billion two years ago [1] - The company's revenue from its core analytics software business was only $121 million last quarter, indicating stagnation [2] - Strategy has accumulated 506,137 Bitcoins at an aggregate purchase price of $33.7 billion, with the current value of this hoard at $44.1 billion, making it the largest corporate holder of Bitcoin [4][2] - The company is pursuing a "21/21" plan to raise $42 billion through equity and fixed-income securities to buy more Bitcoin, which may dilute existing investors and increase debt [4][5] Group 2: Nu Holdings (NU) - Nu is the largest online bank in Latin America, with a customer base that grew from 33.3 million in 2021 to 114.2 million by the end of 2024, and an activity rate increase from 76% to 83% [6][8] - The company's rapid growth is attributed to its digital-only model and increasing internet penetration, with over 70% of Latin America's adult population still unbanked [7][8] - Analysts project Nu's revenue and EPS to grow at compound annual rates of 32% and 40% respectively from 2024 to 2027, with a current market cap of $53 billion [9] - If Nu meets analysts' expectations and trades at 5 times forward sales, its market cap could reach $131.5 billion, and at 10 times forward sales, it could be worth $263 billion [10] Group 3: Coupang (CPNG) - Coupang, South Korea's largest e-commerce platform, increased its customer base from 14.9 million in 2020 to 22.8 million by the end of 2024 [11] - The company has built a robust fulfillment infrastructure, with 70% of South Korea's population living within seven miles of a fulfillment center, and has over 14 million subscribers to its Rocket Wow service [12] - Analysts expect Coupang's revenue to grow at a compound annual rate of 14%, with adjusted EBITDA rising at 54%, while its current market cap is $42.6 billion [14] - If Coupang overcomes economic challenges and achieves a valuation of 3 times forward sales, its market cap could surge to $133.8 billion by early 2027 [14]

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]

Financial Data and Key Metrics Changes - Total revenue for 2024 grew by 12.5% year-over-year to $60.2 million, with net income at $5 million and adjusted net income increasing by 18.6% to $8.3 million compared to 2023 [8][10][32] - Operating cash flow generated a net inflow of $13 million for the full year 2024, with cash and cash equivalents exceeding $165.9 million [10][34] - Gross profit for Q4 2024 increased by 2.5% to $11.8 million, with a gross margin of 74.1%, down from 81.3% in Q4 2023 [27] Business Line Data and Key Metrics Changes - The B2C mobile app business saw a 14.3% increase in active paying subscribers, reaching over 1 million by the end of 2024 [10][35] - AI/AR cloud solutions and subscription revenue grew by 25.4% to $15.1 million, representing 95% of total revenue in Q4 2024 [25] - Licensing revenue decreased by 72.2% in Q4 2024 to $0.5 million, indicating a shift towards a recurring subscription revenue model [26] Market Data and Key Metrics Changes - Positive momentum was noted in North America, Western Europe, and developing markets like Brazil, with strong demand for AI-powered features [11] - The enterprise customer base increased by 24 brand clients, totaling 732 brand clients with over 822,000 SKUs onboarded [36] Company Strategy and Development Direction - The company aims to deepen its presence in the beauty, fashion, and skin segments while exploring cross-sell opportunities and broadening product offerings [22] - The acquisition of Wanna from Farfetch is expected to enhance market reach and expand the total addressable market, particularly in luxury brands [15][39] - The focus remains on continuous R&D in generative AI to drive user engagement and loyalty [14][76] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the B2B market, noting challenges from inflation and potential tariffs affecting client spending [44][46] - The guidance for 2025 projects total revenue growth of 13% to 14.5%, with B2C revenue expected to grow faster than B2B [23][49] Other Important Information - The company reported a decrease in operating expenses by 3.6% in Q4 2024, attributed to lower R&D and G&A expenses [28] - The adjusted net margin for the full year 2024 was 13.8%, reflecting effective cost control alongside revenue growth [33][37] Q&A Session Summary Question: What is the situation with enterprise clients regarding spending on services? - Management noted that while the B2B market remains challenging, there is still interest from brands to invest in digital solutions, although they are cautious about spending [44][46] Question: What was the B2B revenue contribution last year? - The B2B revenue contribution was approximately 40% last year, with expectations for it to drop to 30% to 40% in 2025 [52][53] Question: How will operating expenses be managed in light of reduced gross margins? - Management indicated that they will continue to invest in growth while maintaining financial discipline, ensuring that expenses do not create financial pressures [55][56] Question: What is the competitive landscape for the fashion segment post-acquisition of Wanna? - Management stated that Wanna is a leader in the fashion space with significant brand partnerships, and the acquisition strengthens their position in the market [58][60] Question: What is the timeline for the full integration of Wanna? - Integration is expected to continue through the first half of the year, with a go-to-market strategy planned for later in the year [72] Question: Where will the company focus its investments in the coming year? - The primary focus will be on R&D for generative AI, alongside digital marketing efforts to attract app users [76]