Coupang: Amazon Korea with rising profits and global ambition
Coupang $CPNG, previously considered one of the failed IPOs of 2021, is now turning into a profitable e-commerce leader in Asia. Despite the stock still trading below its issue price, the company has seen a fundamental turnaround in fundamentals - growing, profiting and expanding.
- 23.6 million active customers - roughly half of South Korea's adult population
- Speed and quality of delivery: most orders delivered before dawn
- End-to-end model: in-house logistics, warehouses and couriers (100+ distribution centers)
- WOW program - combination of Prime + Netflix + food delivery
- Easiest returns on the market → extremely high customer loyalty
Year-on-year sales growth
Q1 2021
74 %
Q4 2021
34 %
Q4 2022
5 %
Q4 2023
23 %
Q1 2025
11 %
- Successful entry into Taiwan (as opposed to Japan)
- Acquisition of Farfetch (luxury fashion in Europe) = entry among global retailers
- Emphasis on organic growth and acquisitions
- Current price: $27.31
- Still 23% below IPO price ($35)
- +24% YTD = signal of renewed investor confidence
- Market capitalization: $50 billion
- Profitable company - exceptional among e-commerce companies outside the US/China
Coupang $CPNG is an example of a company that has "worked" its way up - from a loss-making IPO to an effective technology leader with real profitability and customer loyalty. Its logistics network, technology and customer experience create a defensive bulwark that is hard to replicate.
I'd rather invest in that $AMZN. I recently raised a position and the prospects are great.
The IPO was a success and if the company does well again and there is interest in the shares, it could be a great opportunity.