Are Investors Still Underappreciating This Hypergrowth E-Commerce and Technology Stock?
Coupang stock is rising after hours after its latest earnings result.
Technology, cryptocurrency, and artificial intelligence (AI) stocks have taken a tumble in February. Coupang (NYSE: CPNG), on the other hand, largely bucked this trend. In addition to reporting impressive growth for the fourth quarter of 2024 after markets closed on Tuesday, the company has expanded into financial technology, new markets such as Taiwan, and food delivery is leading to robust growth for the platform.
The good news is there's potentially a lot of growth left for the business that just surpassed $30 billion in annual revenue. Still, as of Thursday's market close, the stock was down 2.6% in the two days since the earnings release. Most likely, the market is underappreciating Coupang stock. Here's why.
Delving deeper in to the earnings report, Coupang posted strong results across the board. For the fourth quarter, revenue was up 21% year over year to $8 billion, both on an organic and foreign currency neutral basis. Coupang operates mainly in South Korea but is headquartered in the U.S. and reports in U.S. dollars, and can see major tailwinds or headwinds to growth depending on foreign currency movements. Recently, it also acquired the luxury platform Farfetch, driving a onetime boost in revenue growth.
