Coupang Stock
Not seeking financial advice, obviously, but curious what people here think about Coupang’s stock. It’s been steadily going down after their IPO, but I wonder if people are optimistic about their future and expect Amazon-like growth at some point (making this comparison since Coupang is often called ‘Amazon of Korea’).
Amazon grew massively with AWS and even Coupang uses AWS. Their e-commerce operations is very inefficient, but their presence in the market is good in Korea. I think they are trying to convert that presence into profit in other areas like ad or media. So I would say it all depends on success of those expansions.
Didn’t think about AWS, thank you!
I agree. The stock is currently at all time low so it's tempting to enter a position. However, their p/s ratio is around 3.6* that is very high for commerce companies with low margin. Amazon has the same ratio but AWS makes a huge difference. Walmart, Costco, JD all have p/s of 1 or below. Coupang has high growth that might justify a premium. But unless they grow higher margin revenue channels like ads and others, I don't see the stock going back to IPO levels. * According to finviz. It might be not up to date. Update: I looked at their recent revenue. It seems like they will do close to $20B In revenue this year. With a current market cap of $53B that's p/s of 2.6.