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].

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the comparison between **Walmart (WMT)** and **Amazon (AMZN)** in the **US Retail & Internet** sector, particularly in the e-commerce arena [1][8]. Core Insights and Arguments 1. **Walmart's E-commerce Growth Potential** - Walmart's US e-commerce has been growing at over **20%** and is expected to continue with **double-digit CAGR** as it expands its third-party (3P) marketplace [2][9]. - The estimated contribution margin for Walmart's US e-commerce is **+0.5%**, compared to Amazon's retail domestic margins of approximately **6%** [2][28]. 2. **Valuation Comparison** - Walmart is trading at a **P/E ratio of ~35x**, significantly higher than Amazon's **~24x**. This premium reflects Walmart's stronger e-commerce growth potential [4][59]. - Adjusting for e-commerce profitability improvements, Walmart's valuation may be closer to **28x** [4][46]. 3. **Amazon's Competitive Advantage** - Amazon maintains a dominant share of **~41%** in the US e-commerce market, supported by its extensive fulfillment network and advertising business [3][23]. - Amazon's retail margins, including advertising, are around **~5%**, with a focus on optimizing logistics and fulfillment costs [40][48]. 4. **Long-term Outlook** - Both Walmart and Amazon are seen as structural winners in e-commerce, with Walmart expected to lead in e-grocery and Amazon in non-grocery categories [5][59]. 5. **E-commerce Profitability** - Walmart's e-commerce is projected to turn profitable by **Q1'26**, with potential improvements in contribution margin to **+6.9%** through retail media growth and cost reductions [28][38]. - Amazon's retail business is nearing break-even, with margins around **-1%** without advertising [40][48]. Additional Important Insights 1. **Market Dynamics** - Walmart's grocery focus drives traffic to its e-commerce platform, while Amazon struggles with grocery scale, presenting an opportunity for Walmart [11][29]. - The growth of Walmart's 3P marketplace is expected to outpace its first-party business, contributing significantly to e-commerce growth [11][16]. 2. **Investment Implications** - Both companies are rated as **Outperform**, indicating a positive outlook for their respective e-commerce strategies [7][50]. 3. **Risks and Challenges** - Walmart faces risks related to macroeconomic conditions, regulatory scrutiny, and competition in e-commerce [67][69]. - Amazon is under investigation for antitrust issues, which could impact its financials and valuation [67][69]. 4. **Future Projections** - Walmart's e-commerce penetration could reach **~25%** of its sales by **FY30**, with a projected **12% CAGR** in e-commerce growth from **FY25 to FY30** [10][21]. - Amazon's growth in under-penetrated categories like health and personal care is expected to improve its market position [19][25]. This summary encapsulates the key points discussed in the conference call, highlighting the competitive landscape between Walmart and Amazon in the e-commerce sector.