Where Will Coupang Stock Be in 1 Year?

Core Insights - Coupang, South Korea's leading e-commerce company, has seen its stock price decline from an IPO opening of $63.50 to$23.00, disappointing early investors [1][2] - The company has a market capitalization of $42 billion and trades at 1.2 times its projected sales for 2025, indicating potential undervaluation [2] Group 1: Company Performance - In Q3 2024, Coupang served 22.5 million customers and its Rocket Wow subscription service reached 14 million members by the end of 2023 [3] - Revenue growth accelerated over the past year, with a notable expansion in the Coupang Eats platform and the introduction of new features to enhance revenue per active customer [4] - Revenue growth year-over-year (YOY) increased from 21% in Q3 2023 to 27% in Q3 2024, while active customer growth decreased from 14% to 11% in the same period [5] Group 2: Financial Metrics - Coupang's gross margin improved from 25.3% in Q3 2023 to 28.8% in Q3 2024, and adjusted EBITDA margin remained stable around 4% [5] - The company turned profitable on a GAAP basis in 2023, with expectations to maintain profitability in the future [6] Group 3: Future Outlook - Analysts project a full-year revenue growth of 25% for 2024, with adjusted EBITDA expected to dip by 9% [7] - For 2025, revenue and adjusted EBITDA are anticipated to rise by 15% and 150%, respectively, suggesting a reasonable valuation at 21 times enterprise value to EBITDA [7] - Political instability and economic challenges in South Korea may impact investor sentiment, but a resolution could lead to increased interest in Coupang [8][9]