Coupang outperforms Sea Limited in growth prospects and valuation

From Nasdaq: 2025-05-22 04:15:00

In 2021, Coupang and Sea Limited were popular growth stocks, with Coupang going public at $35 and Sea at $15. Coupang’s stock hit an all-time high of $50.45, while Sea’s reached $366.99. Coupang’s stock now trades at $27, and Sea at $163 due to slowing growth and rising interest rates.

Coupang, based in Seattle, has seen rapid growth in South Korea with 23.4 million active customers. It launched new services like Coupang Play and expanded to Taiwan and the UK. Its revenue grew at a CAGR of 26% from 2020 to 2024, turning profitable in 2023 and 2024.

Sea, based in Singapore, relies on Garena’s gaming profits to subsidize Shopee’s losses. Shopee’s growth slowed as competition increased, and Sea expanded into new markets. Despite challenges, Sea’s revenue grew at a CAGR of 40% from 2020 to 2024, turning profitable in 2023 and 2024.

Coupang is considered a better buy due to its balanced business model and lower valuation compared to Sea. Coupang’s growth outlook is positive, with revenue and EPS expected to grow at a CAGR of 13% and 130% from 2024 to 2027. Sea, on the other hand, faces challenges with its dependence on a single video game for profits.

Considering investment options, the Motley Fool’s Stock Advisor team has identified the 10 best stocks to buy now, excluding Coupang. These stocks have the potential for significant returns, with historical examples like Netflix and Nvidia showing substantial growth over time. Stock Advisor has outperformed the S&P 500 with a total average return of 975%.



Read more at Nasdaq: Better Growth Stock: Coupang vs. Sea Limited