Coupang is Investor's Business Daily's Stock Of The Day for Tuesday. The international e-commerce stock has formed a handle entry from a cup base ahead of the company's earnings report later this afternoon.
Founded in 2010 with its corporate headquarters in Seattle, Coupang operates the leading e-commerce marketplace in South Korea. With initial backing from SoftBank, Coupang has invested heavily in developing same-day delivery in the country.
Its offerings also include payments technology, food delivery and a streaming entertainment service. Coupang acquired U.K.-based global luxury goods marketplace Farfetch in January 2024.
On the stock market today, Coupang stock fell 1.9% to close at 24.17. But the shares rallied more than 4% in extended trading. Shares are trading within a cup with a 26.91 buy point, according to IBD MarketSurge charts. But a recent downward trend has formed an alternative 25.67 handle entry, as shown on the MarketSurge weekly chart.
However, with earnings later today investors may want to be cautious and wait for the market response to the company's results.
Coupang Earnings Expectations
For its fourth-quarter report, analysts polled by FactSet project Coupang stock will post adjusted earnings of 1 cent per share, down from 8 cents in the same period a year earlier. Sales are seen rising 24% to $8.14 billion.
Coupang's adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — is projected to increase 25% to $368 million.
Shares fell when Coupang reported third-quarter results in November, despite both earnings and sales beating expectations. Adjusted EBITDA came in lower than expected.
Coupang held its initial public offering on the New York Stock Exchange in 2021. Shares slumped in 2022 and are still well below highs reached in late 2021. Last year was a solid year overall, however, with the stock gaining roughly 40%. Coupang stock is 46% higher from 12 months ago, and up 9% so far this year.
Watch For Competition
Investors should watch for updates on competition. Coupang competes with Korean internet conglomerate Naver as well as international players like PDD Holdings' Temu. Chinese e-commerce giant Alibaba in December announced a joint-venture online shopping operation with South Korean retailer E-Mart.
Meanwhile, there are 17 analysts following Coupang stock, according to FactSet. Of those analysts, 13 give Coupang a buy or equivalent rating, while four have a hold rating.
Analysts with Morgan Stanley rate Coupang stock a positive overweight. In a 2025 e-commerce preview published last month, Morgan Stanley analysts said they expect Coupang will continue "to grow at over (two times) the market growth rate on the back of expanding selection for first-party (sales) and strong momentum with its logistics service."
Coupang Stock Ratings
Coupang stock holds an IBD Composite Rating of 88 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one. The best growth stocks typically have a Composite Rating of 90 or better.
Coupang stock's Relative Strength Rating is 84 out of 99, indicating it is outperforming 84% of stocks tracked by IBD over the past 52 weeks.
Coupang holds an Accumulation/Distribution Rating of B. That rating analyzes price and volume changes in institutional ownership for a stock over the past 13 weeks. The current rating indicates slightly more buying than selling by institutions.
