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Coupang - AI Stock Analysis
Analysis generated June 4, 2025
Coupang, often likened to the “Amazon of South Korea,” is an e-commerce company headquartered in Seoul, South Korea. It was founded in 2010 by Bom Kim. Coupang has grown into South Korea's largest online retailer, offering a wide array of products from daily necessities to electronics. Its competitive advantage lies in its logistics network, with its signature 'Rocket Delivery' service which promises next-day or even same-day delivery. The company debuted on the New York Stock Exchange (NYSE) in March 2021.
Fundamental Analysis
Revenue: For the last quarter, Coupang reported revenue of $7.91 billion. This represents a decrease of 0.72% compared to the previous quarter, signaling a slight setback in short-term growth. However, the year-over-year growth shows an 11.16% increase, which is a positive indicator of the company's long-term growth strategy paying off.
Net Income: The net income for the last quarter came in at $107 million. Although this is a significant decrease of 31.41% compared to the previous quarter, it's important to note that the net income increased by an astounding 2,040% compared to the same quarter last year. This indicates that Coupang has achieved substantial profitability improvements over the year.
EBITDA: The EBITDA for the last quarter was reported at $0, which represents a 100% decrease from the previous quarter and year over year. This is a major red flag as it indicates that the company has had zero earnings before interest, taxes, depreciation, and amortization.
P/E Ratio: The current Price to Earnings (P/E) ratio stands at 202.43, which is strikingly high. This suggests that the stock may be overvalued, aligning with a bearish outlook. Investors should be cautious as high P/E ratios can often indicate an overoptimistic market sentiment.
Additionally, recent insider selling can be seen as a bearish signal, adding to the concerns about the company's immediate prospects.
Technical Analysis
Current Stock Price: Coupang’s stock is currently priced at $28.38, reflecting a 17.76% increase compared to a month ago. This indicates a positive short-term trend. Over the past year, the stock has risen by 30.24%, suggesting a robust long-term performance.
SMA10: The current 10-day Simple Moving Average (SMA10) is 28.12, higher than the previous SMA10 of 28.03, suggesting an upward trend in price movement.
RSI: The Relative Strength Index (RSI) stands at 29.5, which indicates that the stock is in an oversold condition. This could be a bullish signal as it suggests that the price may soon correct and move upward.
The current trend is bullish, suggesting that despite some short-term concerns, the stock is on an upward trajectory in the short to medium term.
Alternative Data Analysis
Job Postings and Employee Sentiment: Coupang has 278 open positions, a stable number indicating that the company is maintaining its workforce. Employee sentiment remains neutral, suggesting neither strong optimism nor pessimism within the company.
Customer Acquisition and Engagement: Coupang has an estimated 37,000 website visitors, although this number is down by 20% in recent months. This decline is worrisome as it could indicate a reduction in customer interest or acquisition. On the positive side, the company has 220,000 Instagram followers, up 3% in recent months, indicating growing social media engagement. Conversely, Twitter followers have decreased by 4%, signaling a potential drop in interest.
Finally, concerning AltIndex's AI score, Coupang scores a 46, which is a hold signal. This score considers a variety of fundamental, technical, and alternative data points to predict the stock’s performance.
Conclusion and Recommendation
Coupang presents a mixed bag as an investment opportunity. On the positive side, the year-over-year growth rates for both revenue and net income are impressive. However, the quarter-over-quarter declines and EBITDA figures raise some significant concerns. The high P/E ratio suggests potential overvaluation. The technical indicators are mostly positive, with the current bullish trend and RSI indicating that the stock might rebound soon. Additionally, alternative data points such as stable job postings and increased Instagram engagement provide some optimism.
Considering all factors—fundamental, technical, and alternative data—the recommendation is to hold. Investors should remain cautious due to the high P/E ratio and recent insider selling but can take comfort in the company’s long-term growth prospects and current upward trend in stock price.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
