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Coupang’s subscription membership program, Rocket Wow, grew by 27% in 2023 to over 14 million paying users — roughly two-thirds of its active customer count. Coupang may have a natural advantage compared to its e-commerce peers in other countries due to South Korea’s high population density. With a population density 15 times higher than the United States, South Korea is almost tailor-made for e-commerce since physical retail space is hard to find and expensive. SEOUL–(BUSINESS WIRE)–UGREEN, a global tech brand renowned for its innovative technology and user-centric products, has officially launched its store on Coupang, one of South Korea’s leading e-comme…

1. The company operates through Product Commerce and Developing Offerings segments.
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3. Coupang delivered mixed earnings results for the second quarter as revenue climbed significantly, but profitability challenges remained due to acquisition costs and fines.
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Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Growing its active customers, sales, and gross profits by 12%, 25%, and 41% during the second quarter of 2024, Coupang continued its lengthy run of above-average growth and steady margin improvements. While the market initially reacted negatively to the company’s results as it slightly missed analysts’ sales expectations, Coupang shares have risen over 10% across the last two days.

Coupang to Announce Second Quarter 2024 Results on August 6, 2024

The Zacks Consensus Estimate has changed -100% over the last 30 days. Based on this 6% figure and the company’s P/S ratio of 1.4,  Coupang could be said to trade at roughly 23 times earnings, which is lower than the S&P 500 index’s average of 25. Given that it grew sales by 20% in 2023 and that analysts are expecting 17% growth this year, Coupang’s valuation could prove to be too cheap.

Company Insights: CPNG

Even though a company’s earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It’s almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company’s potential revenue growth is crucial. For the current quarter, Coupang is expected to post break-even earnings per share, indicating a change of -100% from the year-ago quarter.

Coupang delivered mixed earnings results for the second quarter as revenue climbed significantly, but profitability challenges remained due to acquisition costs and fines. Coupang, armed with a massive $5.6 billion cash hoard, is excited to apply what it has learned in South Korea to new markets and even new product verticals. How to buy decred After investing heavily in its FLC infrastructure over the last few years, Coupang is finally starting to reap the benefits as its logistical network achieves higher efficiencies each quarter.

Coupang, Inc. (CPNG) Q2 2024 Earnings Call Transcript

Thanks to its legions of loyal customers, Coupang has doubled its sales since its initial public offering (IPO) alpari review in March 2020, and it broke even on the bottom line in 2023. I’m paying 30x forward free cash flow for Coupang, Inc.’s mature Product segment, but the Developing Offerings segment adds massive potential upside. Coupang (CPNG) stock price has done well this year, rising by 56% since January, beating popular indices like the Nasdaq 100, S&P 500, and the Dow Jones. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

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Over the previous 90 days, Coupang’s stock had 2 admiral markets company upgrades by analysts. According to analysts, Coupang’s stock has a predicted upside of 10.44% based on their 12-month stock forecasts. Coupang, Inc. (CPNG) has recently been on Zacks.com’s list of the most searched stocks. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.