2023-04-18 18:00:00 ET
Investors have never shown much love for the South Korean e-commerce marketplace Coupang (NYSE: CPNG) . The company went public on March 11, 2021, at $63.50 per share, with a market cap of $102.2 billion, and since then, the stock has been on a long downhill slide. Today, the company trades almost 75% lower at less than $17, and the market cap has sunk to $28 billion.
As an unprofitable growth company, the stock responded poorly when the South Korean Central Bank started raising interest rates in August 2021. The country's Central Bank's 20-month campaign to choke off inflation resulted in the South Korean economic growth and private spending contracting 0.4% sequentially in the fourth quarter of 2022 -- terrible for Coupang's revenue growth.
While the South Korean economy looks gloomy over the first half of 2023, some analysts think it should begin to rebound from this slow growth period in the latter half of the year. So if you believe the South Korean economy will improve within the next 12 months, you should start buying Coupang's stock today. Here's why.
For further details see:
Coupang: An Undervalued Growth Stock for the Upcoming Bull Market