CPNG - Coupang: Core Business Continues To Wow Yet Stock Is Pricey

2024-06-23 21:51:19 ET

Summary

• Coupang reports strong Q1 2024 with continued growth outpacing the broader South Korean e-commerce industry.
• The South Korean e-commerce market continues to expand, benefiting Coupang, but faces competition from Chinese companies.
• Operational risk remains with the Farfetch turnaround and integration, which could result in continued losses for the company.

Investment Thesis

Coupang ( CPNG ) reported a strong Q1 2024 with guidance that points to continued growth and profitability. The overall South Korean e-commerce market continues to grow, despite the already high penetration, benefiting Coupang. Furthermore, Coupang is growing faster than the overall industry, implying that management is doing a good job of delighting customers and adding market share....

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