Core Insights - Coupang is evolving from a South Korean e-commerce platform into a broader technology powerhouse, leveraging logistics, data, and customer loyalty to expand its business model beyond retail [1][3][14] Group 1: E-commerce and Logistics - Coupang has established itself as a household name in South Korea through its Rocket Delivery service, which offers same-day or dawn delivery to most of the population [2] - The company is enhancing its logistics capabilities to support new ventures, such as food delivery, which could grow into a multibillion-dollar business as it gains scale and efficiency [9][8] Group 2: New Business Ventures - Coupang Play has transformed from a customer engagement tool into one of South Korea's top streaming platforms, enhancing customer loyalty and retention [4][5] - Coupang Eats is entering the competitive food delivery market, utilizing its logistics network to reduce delivery times and create additional customer touchpoints [6][7] - Coupang Pay is positioned to become a significant growth driver in fintech, with potential expansion into credit, lending, and merchant services [10][11] Group 3: Advertising Potential - Coupang has the opportunity to develop a robust advertising business, similar to Amazon, by leveraging its extensive customer data and insights into shopping behavior [12][13] - The advertising segment could significantly enhance Coupang's profitability, as it typically offers better margins compared to retail [13] Group 4: Investment Implications - The diversification into technology-driven businesses could provide valuable long-term growth opportunities for investors, as even one successful venture could significantly increase Coupang's earnings power [15]

Core Insights - Coupang is often compared to Amazon, but it has a unique business model and expansion into various sectors beyond e-commerce [2][3] Group 1: Market Position - Coupang is the leader in South Korea's retail market, with approximately 24 million active customers, representing about 46% of the country's population [5] - The company has developed a robust logistics network, with 70% of South Koreans living within a seven-mile radius of a logistics center, enhancing its delivery capabilities [6] - Customer loyalty is reflected in the revenue per active customer, which increased from $1,196 in 2023 to $1,207 in 2024, indicating growing customer spending [7] Group 2: Financial Performance - Coupang reported $8.5 billion in revenue for Q2 2025, marking a 16% year-over-year increase, with gross profit rising by 20% [8] - The company achieved a net income of $31 million in Q2 2025, reversing previous losses and maintaining profitability for four consecutive quarters [8]

Core Insights - Coupang has established itself as the leading player in the South Korean e-commerce market, drawing comparisons to Amazon due to its similar strategies and impressive results [2][4]. Group 1: Market Position and Customer Base - Coupang boasts nearly 24 million active customers, representing almost half of South Korea's population of approximately 52 million [5]. - The company offers a wide range of products with delivery options including same-day, early morning, and next-day delivery, enhancing customer convenience [5]. Group 2: Membership and Services - The Rocket Wow membership program provides additional benefits such as meal delivery, streaming content, and integrated payment systems, paralleling Amazon Prime [6]. Group 3: Logistics and Delivery Capabilities - Coupang claims to deliver 99% of Rocket Delivery orders within 24 hours, including fresh food deliveries by 7 a.m. the following day [7]. - The company is investing $2.2 billion to expand its logistics operations by 2027, aiming to achieve overnight delivery for approximately 88% of South Korea [8]. Group 4: Financial Performance and Profitability - After experiencing net losses in the first three years post-IPO, Coupang turned a profit in 2023, indicating a positive trend in profitability [10]. - Analysts expect this profitability trend to continue, especially as the company expands into Taiwan, where it reported triple-digit percentage revenue growth year over year in Q2 [12]. Group 5: Valuation and Growth Potential - Coupang's stock is currently trading at a premium valuation of 1.8 times trailing sales, above its three-year average [13]. - Management suggests that growth in Taiwan mirrors early growth in South Korea, indicating potential for reasonable pricing if similar expansion occurs [13].

Core Insights - Coupang is executing a successful business model similar to MercadoLibre, focusing on dominating its home market before pursuing international expansion [2][14] - The company has built a strong e-commerce presence in South Korea, achieving significant customer growth and profitability [3][4] Group 1: Market Position and Strategy - Coupang has established itself as the e-commerce leader in South Korea, with 23.9 million active customers, reflecting a 10% year-over-year increase [3] - The Product Commerce segment generated $7.3 billion in revenue with an adjusted EBITDA of $663 million, indicating a healthy 9% margin [4] - The company’s strategy is not solely focused on growth but emphasizes profitability, providing a stable foundation for future expansion [5] Group 2: Logistics and Competitive Advantage - Coupang's proprietary logistics network, Rocket Delivery, serves as a competitive moat, enabling efficient last-mile delivery [6][7] - The volume of same-day and next-morning deliveries grew by over 40% year-over-year, enhancing customer loyalty [8] - The Fulfillment and Logistics by Coupang (FLC) service allows third-party sellers to utilize its logistics network, creating a flywheel effect that attracts more customers [9] Group 3: Growth and Ecosystem Expansion - Coupang's Developing Offerings segment saw a 33% year-over-year revenue increase to $1.2 billion, driving the company's growth strategy [10] - The ecosystem includes high-growth ventures like Coupang Eats and Coupang Play, supported by a subscription model similar to Amazon Prime [11] - The company has successfully expanded into Taiwan, achieving triple-digit year-over-year revenue growth and a 54% surge in a single quarter [12][13]

Core Viewpoint - Coupang and Sea Limited, once popular growth stocks, are now being evaluated for their potential as turnaround plays in the current market environment [1][3]. Coupang Overview - Coupang operates South Korea's largest e-commerce platform and went public at $35 in March 2021, reaching an all-time high of $50.45 shortly after [2]. - The stock currently trades at approximately $27, having retreated from its peak due to slowed growth and rising interest rates [3]. - Coupang's active customer base grew from 14.9 million at the end of 2020 to 23.4 million in Q1 2025, with Wow subscribers increasing from 6 million in 2020 to 13 million in 2023 [6]. - The company has expanded its marketplace to Taiwan and acquired Farfetch to diversify beyond South Korea, achieving a revenue CAGR of 26% from 2020 to 2024 [7]. - Coupang turned profitable on a GAAP basis in 2023 and 2024, driven by higher-margin marketplace expansion and automation [8]. - Analysts project Coupang's revenue and GAAP EPS to grow at CAGRs of 13% and 130% from 2024 to 2027, respectively, with a current valuation of 1.4 times this year's sales [9]. Sea Limited Overview - Sea Limited, based in Singapore, operates Shopee, the leading e-commerce platform in Southeast Asia, and went public at $15 in October 2017, reaching a peak of $366.99 in October 2021 [2]. - The stock currently trades at around $163, facing challenges as growth has slowed and competition has intensified [3][12]. - Sea's strategy relied on Garena's gaming profits to subsidize Shopee's losses, but the gaming segment has faced setbacks, including the ban of Free Fire in India [11]. - Despite these challenges, Sea's revenue grew at a CAGR of 40% from 2020 to 2024, and it also turned profitable on a GAAP basis in 2023 and 2024 [14]. - Analysts expect Sea's revenue and GAAP EPS to grow at CAGRs of 20% and 97% from 2024 to 2027, with plans to enhance Shopee's features and expand into Vietnam [15]. Investment Comparison - Coupang is viewed as a more balanced investment with a cheaper valuation compared to Sea, which is heavily reliant on a single aging video game for profits [16]. - While Sea is growing faster, its higher forward price-to-sales ratio makes it less attractive than Coupang [16].