CPNG - Why Coupang Stock Jumped This Week
2024-03-01 12:25:01 ET
Week to date, shares of Coupang (NYSE: CPNG) were up 14% as of 10:38 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence . Korea's largest e-commerce company reported another quarter of accelerating revenue growth that sent the shares higher, but its relatively small footprint of the retail market spells more growth.
Low growth expectations can set up a stock to soar when a company's financial results are better than expected. That's what happened with Coupang this week. The company reported its fourth consecutive quarter of accelerating revenue growth, driven by a 16% year-over-year increase in active customers.
Management credited investments it made years ago, such as fulfillment and logistics, for driving strong results. Small businesses are finding value in Coupang's fulfillment service, where participating merchants were up 80% over the year-ago quarter.
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Why Coupang Stock Jumped This Week