Will Coupang be the next Amazon?

Will Coupang be the next Amazon?

Coupang is still growing considerably faster, and both stocks are trading at roughly the same top-line multiple. Coupang and Amazon are fetching enterprise values of 4.3 and 4.9 times trailing revenue, respectively….1. Coupang is growing faster.

Period Amazon Coupang
FY 2019 21\% 51\%
FY 2020 28\% 91\%
Q1 2021 44\% 74\%

Is Coupang similar to Amazon?

Coupang is the second-largest South Korean eCommerce platform, after Gmarket, and it’s been compared to Amazon due to its rapid growth and lightning-fast delivery.

Is Coupang overvalued?

Many investors liken the company to Amazon, but the two main differences are that Coupang is at an earlier stage of growth, and doesn’t have the profitable AWS business. We believe the shares are overpriced currently, and would only consider investing if they traded at significantly lower prices.

What is the future for Coupang?

This leadership position could allow it to grow alongside the country’s e-commerce market as a whole, which is expected to grow 10\% annually from $128 billion in 2019 to $206 billion by 2024. Achieving $15.7 billion in trailing 12-month sales, Coupang currently holds just 10\% of Korea’s 2021 e-commerce market share.

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Is Coupang making money?

Coupang (CPNG) also missed revenue estimates. Before the market open Friday, Coupang reported an adjusted loss of 19 cents a share on revenue of $4.64 billion. Analysts expected Coupang to report a loss of 17 cents a share on revenue of $4.8 billion. Revenue climbed 48\% from the year-ago period.

Can Coupang grow?

While there is good market growth in South Korea, that alone will not allow Coupang to maintain 70\% growth. Investors should watch its performance in Singapore and Japan, and if it can gain market share there, then the company could see strong, sustained growth for many years.

Can foreigners use Coupang?

Can foreigners use Coupang or Coupang Eats? Yes, foreigners can use Coupang as long as they have: a domestic (Korean) debit or credit card. Korean phone number tied to your registration card.

Why is Coupang so successful?

Because of the buying power of the customers, Coupang could negotiate low prices for their customers. The company was able to capture more value for their customers, increase customer loyalty, thus fueling the indirect network effects even further.

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Who is investing in Coupang?

SoftBank is one of Coupang’s top investors. It recently sold $1.7 billion in Coupang shares below its IPO price.

What is the intrinsic value of Coupang?

As of today (2021-12-03), Coupang’s Intrinsic Value: Projected FCF is $0.00. The stock price of Coupang is $26.15.

Will Coupang be profitable?

Investors are skeptical of Coupang for its lack of profitability and the deceleration in its post-pandemic growth. However, all indications suggest it will continue to grow at a healthy pace and move toward profitability.

Who owns Coupang?

Bom Kim
Coupang

Logo since 2017
Trade name Coupang
Revenue US$12 billion (2020)
Operating income US$−527 million (2020)
Owner Bom Kim (76\% voting power)

Is Coupang the next Amazon (AMZN)?

Coupang is a South Korean e-commerce company. Many investors think that it could be the next Amazon (AMZN) because the companies have many similarities. Amazon stock has returned more than 160,000 percent since its IPO. Coupang priced its shares at $35 apiece for the IPO.

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How many shares of Coupang stock can you sell?

The stock traded above $40 as of that date, which opened a window for Coupang employees to sell as many as 34 million shares. Big investors with even more shares were permitted to start selling from March 26 as long as the stock was trading above $46.

Why is Coupang’s market share increasing in South Korea?

However, Coupang emerged as the only player in South Korea to capture significant market share last year. This growth is attributable to Coupang’s high consumer satisfaction, which stems directly from the unique end-to-end integrated technology and infrastructure developed by the company in the last 10 years.

Is Coupang’s delivery speed better than its competitors?

Having 70\% of Koreans living within seven miles of the Coupang logistics center means that Coupang, in the Korean market at least, is able to quickly surpass the delivery speed of many of its competitors. Sharma: Yes. Emily, so many points about just these initial thoughts comparing it to JD, and Amazon, and Shopify.