As of December 31st, there was short interest totaling 21,970,000 shares, an increase of 42.6% from the December 15th total of 15,410,000 shares. Based on an average daily trading volume, of 8,450,000 shares, the short-interest ratio is currently 2.6 days. These two stocks are recognizable names with market capitalizations of over $1 trillion. But Druckenmiller’s second-largest position is small and not even operating in the United States, his home country.
- EBay, which consistently ranked third behind Coupang and Naver, notably retreated and sold its South Korean unit to the retail giant Shinsegae in 2021.
- U.K.-based Farfetch FTCH Holdings is to be acquired by South Korean Coupang Inc. in a deal that will give Farfetch access to $500 million of emergency capital.
- A big growth category for Coupang is food and grocery delivery, under its Coupang Eats and Rocket Fresh brands.
- There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
- This website is using a security service to protect itself from online attacks.
- Coupang reported a net loss of $518.6 million, or 30 cents a share, compared with a net loss o…
Today, Druckenmiller is only managing his own capital through the Duquesne Family Office. As of his latest 13-F filing, the family office had a concentrated portfolio, mainly of technology stocks. Two of his largest positions — Nvidia and Microsoft — have been highly profitable bets on the growth of artificial intelligence (AI) and cloud computing. Nvidia is his largest position, while Microsoft is his third. For now, analysts expect Coupang’s revenue and adjusted EBITDA to rise 17% and 96%, respectively, in 2023.
A Look Into Coupang Inc’s Price Over Earnings
Coupang isn’t yet profitable, though it has managed to lessen losses over time. In 2018, for instance, Coupang posted a net loss of $1.1 billion, while in 2020 that https://traderoom.info/ loss shrank to just $475 million. On Feb. 12, South Korean ecommerce company Coupang released its S-1 in anticipation of an IPO on the New York Stock Exchange.
Coupang Stock vs. The Competition
The Group also takes issue with Farfetch’s claim that the company and its assets were effectively marketed. Investors who think Coupang’s aggressive expansion plans will pay off should consider buying some shares as it dips below its IPO price. However, they should brace for a lot of near-term volatility as the bears question its ability to continue expanding domestically and overseas. Its fulfillment centers are now located within seven miles of roughly 70% of South Korea’s population. Coupang was founded nearly 13 years ago, and it was heavily backed by venture capital funds prior to its public debut in 2021.
Lastly, Druckenmiller is likely still attracted to Coupang because the stock looks cheap. Shares are down 71% from all-time highs, and its market capitalization is now just $26 billion. According to CNBC, Druckenmiller became an investor in Coupang years before it went public in 2021. Since its debut on the public markets, Druckenmiller has held on to most of his position, indicating he is still bullish on the stock after all these years. “The proposed sale to Coupang is wiping millions of dollars of debt to zero and also harming employees and other investors,” shared Fiona Huntriss, partner at Pallas Partners, in an earlier statement to me.
Sales & Book Value
Coupang is unique in the ecommerce space in that it operates an end-to-end logistics network. This strategy transformed Coupang into one of the top three private sector employers in Korea — the company’s workforce doubled to 50,000 employees over the span of 2020, and it plans to double again by 2025. Prior to founding Coupang, Kim interned at the New Republic, worked for Boston Consulting fortfs review Group and launched a magazine geared toward Harvard alumni. Kim decided to drop out of Harvard Business School to start a digital commerce company in Korea. That company began as a Groupon clone but eventually pivoted into ecommerce. Seungjoo Ro of CLSA says e-commerce firm Coupang is “priced in as a growth stock, and we are wondering where that growth will come from.”
The company has since raised $4.55 billion at a valuation around $60 billion, making it the largest U.S. Coupang, a South Korea-headquartered e-commerce company, said it will accelerate its investment in Taiwan after four straight quarters of profits. According to analysts, Coupang’s stock has a predicted upside of 19.70% based on their 12-month stock forecasts. In its annual report issued earlier this month, Coupang disclosed that it had about 1.58 billion Class A shares outstanding, and roughly 175 million Class B shares outstanding. The only difference between the share classes is voting rights, so in all, Coupang has roughly 1.75 billion shares outstanding.
The company issued 120,000,000 shares at $27.00-$30.00 per share. Goldman Sachs, Allen & Co., J.P.Morgan and Citigroup acted as the underwriters for the IPO and HSBC, Deutsche Bank Securities, UBS Investment Bank, Mizuho Securities and CLSA were co-managers. Coupang’s stock was trading at $16.19 at the beginning of the year. Since then, CPNG shares have decreased by 14.1% and is now trading at $13.91. Second, the company has a fantastic founder running the business named Bom Suk Kim. Kim started Coupang and still runs the business as CEO today, overseeing its domination of the South Korean market.
First, a warehouse fire caused $158 million in inventory write-offs and $295.5 million in net losses. Excluding the fire, Coupang would have posted a net loss of $223.1 million, or $0.13 per share, and beaten Wall Street’s expectations by a penny. Like many other e-commerce companies, Coupang’s growth is decelerating as it faces tougher year-over-year comparisons to the pandemic. As long as the model suggests some upside, good companies can figure out the rest. Everything we’ve seen so far suggests Coupang is a good company — and growth investors should bet on the company figuring out the rest. If you’re confident Coupang can grow at a high rate over the next five to 10 years, then it may be smart to buy shares now.
Rumors emerged early in the day that Coupang would be selling millions of additional shares, according to a report by The Fly. The major market indexes were already under pressure, with the S&P 500 and the Nasdaq Composite slumping 0.6% and 1.1%, respectively. The catalyst that sent the South Korean e-commerce platform plunging even further was a rumor that the company will be issuing additional shares. However, even if the rumor turns out to be true, the sell-off is wildly overdone. Our clients have accelerated their bonds as a first step towards protecting their investments in Farfetch,” she continued.
Coupang Announces Results for Second Quarter 2023
Admittedly, Coupang already has a market capitalization of $73 billion. With the stock down 30% from its highs, is now the time to buy Coupang stock? In other words, economies of scale are finally kicking in for Coupang. During the call, CFO Gaurav Anand attributed that across-the-board expansion to its “operational excellence, supply chain improvements, (and) process improvements that we had seeded earlier in the quarter.” However, you don’t want to dive into a potential Coupang IPO with the blinders on. But fundamental sustainability is still an important discussion here.
So, if you decide to play – when you’re able to play – do so carefully. From my understanding, though, that hasn’t been set in stone yet. Nevertheless, speculative demand will likely be huge considering the interest that the company garnered during multiple rounds of private investing. U.K.-based Farfetch FTCH Holdings is to be acquired by South Korean Coupang Inc. in a deal that will give Farfetch access to $500 million of emergency capital.
Coupang started out with an intense focus on its home market, South Korea. First is Taiwan, an island nation with a similar geographic density to South Korea. On the latest earnings call, Coupang’s management said it was increasing its investment in Taiwan after seeing rapid growth in the region.
LONDON–(BUSINESS WIRE)–The 2027 Ad Hoc Group (the Group) announced today it has formed to explore options over the proposed acquisition of the Farfetch business by Coupang. Upgrade to MarketBeat All Access to add more stocks to your watchlist.