Coupang Sees 77% Stock Gain Amid Revenue Growth Potential

Coupang's shares have surged by 77% over the past year. This excitement stems from robust revenue growth and projected earnings growth, promising a favorable outlook as the company navigates a competitive market landscape.

Date: 08-02-2025

AI Rating: 7

Growing Revenue and EPS Expectations
According to the report, Coupang's net revenue skyrocketed by 27% year over year for Q3, with projections estimating revenue of $30.4 billion in 2024 and $35.1 billion in 2025. The year-over-year revenue growth is expected to be 24.7% in 2024, followed by a steady growth rate of 15.5% in 2025. These figures suggest that investor confidence in Coupang's future is bolstered by solid revenue growth.

The report also highlights the adjusted earnings per share (EPS) for 2025, estimated to reach $0.49, up from $0.01 in 2024, indicating a significant improvement in profitability expectations. Such drastic EPS improvement is critical, as it often plays a substantial role in driving stock prices.

Market Competition and Valuation Risks
Despite the optimistic revenue outlook, the report mentions a wider competitive landscape in Asia-Pacific, which could pose risks to maintaining momentum. Coupang's current stock price reflects high market expectations, trading at 48 times its projected 2025 EPS, which could deter new investors if growth does not meet these lofty expectations. Additionally, knowing that industry competitors, including those with much lower P/E ratios, can dynamically change market conditions increases risk for Coupang.

Investor Sentiments
The combination of consistent revenue growth and an exciting EPS forecast may attract investors looking for growth opportunities. However, existing concerns about competitive pressures and high valuation multiples could temper such enthusiasm. The report’s cautiously bullish stance urges investors to weigh these aspects critically before determining their investment strategies for Coupang in 2025.

Stocks: CPNG AMZN SE BABA PDD