Core Viewpoint - Investors are advised to wait at least a year before investing in new IPOs due to their volatility and overvaluation during the transition from private to public markets [1] Company Overview - Coupang is a leading e-commerce company in South Korea, accounting for approximately 25% of the country's e-commerce market [5] - The company went public at around $50 per share in 2021 but saw its share price drop to $8 within 18 months, currently trading at about half of its IPO price [2] Growth and Market Position - Coupang has doubled its revenue over the past four years and has established itself as a cash-generating entity [2] - The company aims to provide best-in-class customer service, leveraging its first-mover advantage in the South Korean market [5] Customer Satisfaction and Services - Coupang has the highest customer satisfaction score among its peers in South Korea, according to the National Customer Satisfaction Index [8] - The company offers a wide range of services, including free grocery delivery, restaurant delivery, streaming media, and a membership program for under $6 a month [8][9] Logistics and Operational Efficiency - Coupang's logistics network is more efficient than those of similar retailers in other regions, allowing for services like dawn delivery and next-day delivery [6][7] - The company's streamlined operations position it well against competitors, enhancing customer satisfaction [7] Expansion and Growth Opportunities - Coupang acquired luxury goods e-commerce platform Farfetch for $500 million, which has since reached breakeven profitability and attracts 49 million monthly visitors [10][11] - The company is expanding into Taiwan, where it has seen a 23% quarter-over-quarter sales growth and launched its WOW membership program [12][13] Valuation Metrics - Coupang trades at 48 times free cash flow (FCF), primarily due to significant capital expenditures for growth [14][16] - If the company were to reduce its capital spending, its price-to-CFO ratio would be closer to 24, which is a discount compared to the S&P 500 average of 32 times FCF [16] Financial Performance - In Q1, Coupang reported an 11% increase in sales and a 9% increase in active customers, with improvements in gross and net profit margins [17]