Coupang Stock Analysis: Massive Growth and Profit Expansion Lead to 32.3% Surge in February
Friday, 8 March 2024, 14:40
Why Coupang Soared 32.3% in February
The South Korean e-commerce company posted impressive growth and margin expansion. Shares of South Korean e-commerce leader Coupang (NYSE: CPNG) rallied 32.3% in February, according to data from S&P Global Market Intelligence.
Expectations-trouncing results
- In the fourth quarter, Coupang delivered 23% revenue growth, along with adjusted (non-GAAP) earnings per share of $0.08, up 167% year over year.
- The core Product Commerce segment grew 21%, with EBITDA margins of 7.1%.
Coupang's growth potential
Management highlighted a long runway for growth in core markets and new ventures. The acquisition of Farfetch showcases Coupang's strategic expansion into luxury e-commerce.
Valuation and investment decision
- Trading at 18.3 times trailing free cash flow, Coupang offers a bargain price with immense growth prospects.
- Consideration of expert opinions and investment strategies when evaluating Coupang stock.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.