Core Insights - Coupang (CPNG) was initially covered due to its high growth potential and low valuations compared to peers like Mercado Libre (MELI) [1] Group 1: Company Analysis - Coupang is positioned in a competitive landscape with significant growth opportunities in the e-commerce sector [1] - The analyst has extensive experience across various industries, which aids in understanding the dynamics of companies like Coupang [1] Group 2: Market Context - The analysis reflects a broader understanding of macroeconomic factors and historical crises that influence market conditions [1]

Core Insights - Coupang (CPNG) was initially covered in May due to its high growth and low valuations compared to peers like Mercado Libre (MELI) [1] - The analyst has extensive experience across various industries, including airlines, oil, retail, mining, fintech, and ecommerce, which aids in understanding complex business models and market dynamics [1] Company Analysis - Coupang is positioned favorably in the ecommerce sector, showing significant growth potential [1] - The analyst's background includes navigating multiple economic crises, which enhances the ability to assess risks and opportunities in the market [1] Market Context - The analysis reflects a broader understanding of macroeconomic, monetary, and political factors that influence business performance [1] - The experience gained from various sectors allows for a comprehensive evaluation of emerging technologies and innovations within the industry [1]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $9.3 billion for Q3 2025, reflecting an 18% year-over-year growth, or 20% in constant currency [4][16] - Gross profit margins expanded over 50 basis points to 29.4%, while adjusted EBITDA margins increased by 10 basis points to 4.5% [4][16] - Operating income rose to $162 million, a 50% increase year-over-year, with a margin of 1.7% [17] Business Line Data and Key Metrics Changes - Product commerce net revenues reached $8 billion, up 16% year-over-year, or 18% on a constant currency basis, driven by strong customer spending [11][16] - Gross profit in product commerce was $2.6 billion, a 24% increase year-over-year, with a gross profit margin of 32.1% [13] - Developing offerings generated net revenue of $1.3 billion, a 32% increase year-over-year, but reported a gross profit decrease of 22% [14][15] Market Data and Key Metrics Changes - The company noted significant growth in Taiwan, with accelerating revenue growth and strong customer adoption [8][9] - The share of volume delivered through the company's own last-mile logistics in Taiwan has increased, enhancing speed and reliability [10][30] Company Strategy and Development Direction - The company aims to broaden selection across first-party and marketplace offerings, focusing on deepening direct relationships with brand partners [6][7] - Investments in automation technologies are being accelerated to improve service levels and operational costs [7][19] - The company is committed to disciplined capital allocation while expanding its customer value proposition [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Korea's growth potential, citing a largely untapped market [4][5] - The company anticipates continued growth in Taiwan, driven by expanding selection and the rollout of its own last-mile logistics [9][30] - Management expects consolidated growth rates to align with previous guidance of approximately 20% year-over-year growth in constant currency [25] Other Important Information - The effective income tax rate for the quarter was 42%, expected to temporarily rise to 60%-65% for the full year due to early-stage operational losses [17] - The company is focused on practical applications of AI to enhance operations and customer satisfaction [35][36] Q&A Session Summary Question: Impact of Naver-Curly partnership on Fresh GMV - Management noted that Fresh continues to grow above the overall business, driven by investments in customer experience and competitive pricing [22] Question: Expected headwind in Q4 due to holiday timing - Management indicated that the timing of Chuseok impacted comparability, but underlying demand trends remain solid [25] Question: E-commerce share and operating loss trajectory in Taiwan - Management stated that Taiwan has exceeded expectations, with strong customer adoption and engagement, and emphasized the importance of building capabilities for long-term growth [29][30] Question: Differences in addressing Taiwan's market challenges - Management acknowledged market differences but emphasized similarities in customer needs, focusing on improving service levels [34] Question: Plans for AI investments - Management confirmed a focus on building internal AI infrastructure to enhance operations, with ongoing efforts to improve efficiency and customer satisfaction [35][36] Question: Percentage of GMV through 1P logistics in Taiwan - Management indicated that it is still early in the journey for 1P logistics in Taiwan, with progress being made [41] Question: Technology investment cycle and EBITDA margins - Management noted that product commerce margins are expanding, with expectations for continued growth through technology and automation [43][45] Question: WOW Membership retention and APEC sponsorship - Management reported encouraging early responses to the WOW Membership and clarified that the APEC sponsorship is not a significant business lever [48][50]

Q3 2025 Financial Highlights November 4, 2025 PAGE 2 Note on Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of U.S. federal securities laws. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," or similar expres ...

IBM - IBM is undergoing a strategic realignment in Q4, involving workforce reductions that will impact a low single-digit percentage of its global employee base, which is approximately 270,000 [2][8] - The company is shifting its focus towards higher-growth areas such as software and services, aiming to streamline operations [2][8] - Despite the global workforce adjustments, IBM expects its overall U.S. employment figures to remain stable year-over-year [2][8] Pharmaceuticals - The Trump administration is negotiating with pharmaceutical companies Eli Lilly and Novo Nordisk to make weight-loss medications available for $149 per month through a new "TrumpRx" program [3][8] - The initiative may also include coverage for these drugs under Medicare and Medicaid, potentially increasing access for consumers [3][8] E-commerce - Amazon has reiterated its commitment to transparency for third-party applications that facilitate customer purchases, following concerns about unauthorized data usage [4][8] - The company aims to ensure that all applications on its platforms adhere to strict transparency and privacy standards [4][8] Geopolitical Developments - Iran has announced the release of two French detainees on bail, which is part of ongoing diplomatic efforts and discussions regarding potential prisoner swaps [5][8]

Core Viewpoint - Amazon (AMZN) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Earnings Estimate Revisions - Analysts are increasingly optimistic about Amazon's earnings prospects, leading to higher earnings estimates that are expected to positively influence the stock price [2]. - The Zacks Rank system, which categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell), has shown that stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, highlighting the effectiveness of earnings estimate revisions [3]. - For the current quarter, the earnings estimate is $1.97 per share, reflecting a +5.9% change from the previous year, with 12 estimates moving higher and one lower in the last 30 days, resulting in a 5.05% increase in the Zacks Consensus Estimate [7]. - For the full year, the expected earnings are $7.13 per share, representing a +28.9% year-over-year change, with 11 estimates moving higher and no negative revisions, leading to a 5.55% increase in the consensus estimate [8]. Zacks Rank and Performance - The positive revisions in earnings estimates have earned Amazon a Zacks Rank 2 (Buy), indicating strong potential for outperformance compared to the S&P 500 [9]. - Stocks rated Zacks Rank 1 and 2 have historically outperformed the S&P 500, reinforcing the investment case for Amazon [9]. Recent Stock Performance - Amazon shares have increased by 15% over the past four weeks, suggesting that investor confidence is growing based on the favorable earnings estimate revisions [10].

Core Viewpoint - The 2025 Double 11 shopping festival has commenced earlier than previous years, with major e-commerce platforms simplifying promotional rules to enhance consumer participation and drive a shift towards quality consumption [2][3][33]. Group 1: Promotional Strategies - Major platforms have eliminated complex rules and adopted direct discount strategies to attract consumers, such as JD's "instant discount" and Taobao/Tmall's direct price cuts [3][4]. - Promotional activities include significant subsidies, such as JD's "super subsidy coupon" and Taobao's direct discounts starting at 15% [3][4]. - The simplification of promotional strategies has successfully activated consumer enthusiasm, leading to expectations of stronger market performance this year [3][4]. Group 2: Consumer Behavior and Trends - Consumer demand during this year's Double 11 reflects a blend of practical needs and a growing pursuit of quality, indicating a shift towards higher-quality living [8][14]. - Cross-platform and cross-category shopping has become mainstream, with consumers averaging purchases across 3.7 platforms and planning to buy 4.9 categories of products [10][29]. - The average spending range for consumers has expanded from 501-2000 yuan to 1001-5000 yuan, with an increase in average spending by 790 yuan compared to last year [14]. Group 3: Category Performance - In the 3C digital category, JD leads with a 60% share of online sales, particularly favored for smartphones and other digital products [19][22]. - The home appliance sector has seen significant growth, with high-end products like dryers and refrigerators experiencing substantial sales increases [26][28]. - Daily necessities and clothing categories are also witnessing strong demand, with over half of consumers planning to purchase these items during Double 11 [29][33]. Group 4: Market Outlook - The e-commerce industry has successfully activated market potential through simplified promotional strategies, leading to a notable shift towards quality consumption [33]. - Future developments are expected to focus on optimizing experiences and emphasizing value, with competition shifting towards high-end, intelligent, and health-oriented products [33].

Market Performance - Major U.S. stock indexes exhibited mixed performance, with the Dow falling by 226.19 points (0.5%) to 47,336.68, while the S&P 500 rose by 11.77 points (0.2%) to 6,851.97 and the Nasdaq climbed by 109.77 points (0.5%) to 23,834.72 [1] Company Highlights - Amazon's shares surged by 4.0% to a record closing high following a $38 billion agreement with OpenAI to provide Amazon Web Services' infrastructure for AI workloads [2] - Nvidia's stock increased by 2.2% after Microsoft secured export licenses to ship Nvidia chips to the UAE [3] - Merck's shares dropped by 4.1%, contributing to the Dow's decline, alongside notable decreases in Nike, 3M, and Chevron [3] Economic Indicators - The Institute for Supply Management reported that manufacturing activity contracted at a faster rate in October, with the manufacturing PMI slipping to 48.7 from 49.1 in September, below the expected 49.5 [5] Sector Performance - Oil service stocks performed strongly, with the Philadelphia Oil Service Index rising by 2.2% due to a modest increase in crude oil prices [6] - Retail stocks gained momentum, driven by Amazon's performance, leading the Dow Jones U.S. Retail Index up by 1.7% [6] - Computer hardware stocks showed significant strength, while housing stocks experienced notable declines [6] International Markets - In the Asia-Pacific region, stocks mostly moved higher, with China's Shanghai Composite Index climbing by 0.6% and South Korea's Kospi surging by 2.8% [7] - European markets had a mixed performance, with the German DAX Index advancing by 0.7%, while the French CAC 40 Index and the U.K.'s FTSE 100 Index edged down by 0.1% and 0.2%, respectively [7] Bond Market - Treasuries showed a lack of direction, with the yield on the benchmark ten-year note increasing slightly to 4.106% [8]

Group 1 - Coupang, Inc. (NYSE:CPNG) is recognized as a top analyst call, with a focus on its expansion into various areas within a super app, primarily in South Korea and Taiwan [1] - The company experienced a 10.5% correction in Q4 2024, despite finishing the year with a 33.9% increase in share price [2] - Coupang reported a 27% year-on-year revenue growth, although its product commerce EBITDA margin fell short of expectations due to increased spending on technology and automation [2] Group 2 - The sluggish domestic consumption in Korea and political uncertainty, including President Yoon's declaration of martial law, negatively impacted Coupang's stock performance [2] - Despite short-term challenges, there is a positive long-term outlook for Coupang's market share expansion and margin growth, positioning it as a competitively advantaged e-commerce business globally [2] - The company is viewed as having significant potential for both revenue and earnings growth in the future [2]

Core Insights - The Labor Economy workers have less than $6,000 in savings and account for $1.7 trillion in annual spending, which is sensitive to wage timing and stability [1][4][6] - Consumer spending appears durable overall, but lower-income consumers are shifting their spending habits, becoming more selective and budget-conscious [3][4][9] Labor Economy Insights - Approximately 60 million U.S. workers earning $25 an hour or less represent 36.5% of all employment but only 15.1% of total consumer spending [4] - Labor Economy households have an average of $5,737 in liquid savings, significantly lower than the typical U.S. consumer's $9,869 [6] - Less than one-third of these households can cover a $2,000 emergency within 30 days, indicating financial fragility [6] Consumer Behavior Trends - Lower-income consumers are increasingly buying lower-priced goods, with 60% reporting this behavior, and 54% waiting for sales before making purchases [7] - Spending on non-essentials has decreased for about 60% of these households, reflecting a trend seen in both Chipotle's traffic and Amazon's grocery sales [7][9] Corporate Performance Indicators - Chipotle's management noted a decline in traffic among lower-income diners, with comparable sales growth driven by pricing rather than transaction gains [3][4] - Amazon reported strong growth in online grocery sales, indicating a shift towards lower price points and essential items as consumers seek value [5][9] Economic Sensitivity - Small disruptions in income, such as delayed paychecks, can lead to significant reductions in consumer spending, potentially cutting $30 billion to $40 billion in annualized outlays [8] - The resilience of higher-income households in discretionary spending contrasts with the focus of lower-income households on necessities and debt management [9]