Coupang (CPNG) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Recently, Zacks.com users have been paying close attention to Coupang (CPNG). This makes it worthwhile to examine what the stock has in store.
In this review of Coupang, we will consider the nature of the business, and, in doing so, better understand its cash flow durability, which is important in understanding its valuation. We will then consider the business' recent performance and growth runway, long-term margin expansion opportunity, and perform a valuation exercise. In my view, the market continues to wholesale reject the possibility of margin expansion, new product launches, new geographies, and new acquisitions. As such, I believe Coupang is undervalued today, and, over time, the market will come to appreciate the substantial economic content latent within the Coupang business.
Coupang (CPNG) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Coupang's fulfillment-led strategy ensures unmatched speed, reliability, and consistency, creating a powerful moat in Korea's e-commerce market. The Wow membership flywheel, integrating Rocket Delivery, Coupang Eats, and Coupang Play, drives customer retention and spend, enhancing Coupang's ecosystem. Growth opportunities lie in expanding rural coverage in Korea, expanding spend per customer and international markets like Taiwan,.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Coupang's strong customer service and extensive distribution network have driven its market leadership in Korean e-commerce, despite low profitability. Margins are expected to rise from 3% to 7% by 2027, potentially increasing EPS by 4x and driving share prices higher. Consensus forecasts predict over 30% annual earnings growth through 2027, with significant free cash flow and potential for share buybacks.
Coupang reported strong Q1'25 earnings with 11% Y/Y revenue growth and a 36% Y/Y increase in EBITDA, driven by core product segment growth. I continue to rate Coupang a buy due to its impressive revenue and solid customer growth. Despite meeting EPS expectations and slightly missing revenue estimates, Coupang showed significant operating income growth of 285% Y/Y, highlighting its profitability.
Coupang, Inc. (NYSE:CPNG ) Q1 2025 Results Conference Call May 6, 2025 5:30 PM ET Company Participants Mike Parker - VP of IR Bom Kim - Founder and CEO Gaurav Anand - CFO Conference Call Participants Eric Cha - Goldman Sachs Stanley Yang - JPMorgan Seyon Park - Morgan Stanley Jiong Shao - Barclays Operator Hello, everyone. My name is Christa, and I'll be your conference operator today.
Coupang, Inc. (CPNG) came out with quarterly earnings of $0.06 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.05 per share a year ago.
CPNG faces currency headwinds and high investments despite solid growth. You can consider holding or awaiting Q1 results for clarity on margins.