CPNG - Why Coupang Stock Stumbled to an 11% Loss This Week
2024-01-19 18:22:28 ET
This wasn't a week to remember for Korea-based e-commerce specialist Coupang 's (NYSE: CPNG) shareholders. According to data compiled by S&P Global Market Intelligence , from last Friday's close to this one, the stock declined by almost 11%. But that wasn't surprising, considering that a researcher from a top U.S. bank downgraded his recommendation on the shares.
Specifically, this was Citigroup 's John Yu, who on Tuesday before the market open changed his rating on Coupang from buy to neutral. Accompanying that, he also enacted a 15% cut to his target price on the stock; it now stands at $17 per share, from the prior level of $20. In his research note detailing the change, Yu cited the e-commerce company's recent purchase of high-end fashion purveyor Farfetch Holdings and the ramp-up of its operations in Taiwan as major tailwinds.
In mid-December, Coupang heralded the $500 million deal for Farfetch. Management has promised to "rededicate" that business "to providing the most elevated experience for the world's most exclusive brands, while pursuing steady and thoughtful growth as a private company." Earlier in the year, it said it would accelerate its investments in Taiwan, which is one of the great economic success stories in Asia.
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Why Coupang Stock Stumbled to an 11% Loss This Week