Coupang stock rebounded 130% from 2022 low, facing competition and slowing revenue growth
From Yahoo Finance: 2025-04-19 04:25:00
South Korean e-commerce company Coupang went public in March 2021 but has since lost over half its value, though it bounced back by 130% from its 2022 low. With a market in South Korea and Taiwan below 100 million, Coupang faces stiff competition from MercadoLibre and Nave with a 24% market share.
Despite the smaller market, Coupang operates over 100 fulfillment centers in South Korea, providing fast delivery to 70% of the population. Its platform uses AI technology for efficient orders and fulfillment, while Grand View Research projects a 22% CAGR for South Korean e-commerce, indicating growth potential.
Coupang’s 2024 revenue surpassed $30 billion, up 24% from the previous year, with net income at $66 million after a one-time tax benefit in 2023. The company generated over $1 billion in free cash flow, showing strong financials despite slowing revenue growth projected at 14% in 2025.
Valuation metrics reveal a mixed picture for Coupang, with a high price-to-free cash flow ratio and steady price-to-sales ratio. While the stock may seem expensive, its growth potential could attract investors despite concerns over revenue growth slowing to 14% in 2025.
Investors considering Coupang should weigh the risks, as the stock’s recovery from its low in 2022 still leaves it far below its all-time high. Despite competition and a smaller market, Coupang could see further growth as e-commerce expands in South Korea and Taiwan, but caution is advised when investing in a company with slowing revenue growth.
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Read more at Yahoo Finance: Is It Too Late to Buy Coupang Stock?