6. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 62
Coupang, Inc. (NYSE:CPNG) is a leading e-commerce company based in South Korea, often referred to as the “Amazon of South Korea”. It operates primarily in the Korean retail market, providing a wide range of products and services through its mobile applications and websites.
The company mainly operates through two main business segments including Product Commerce and Developing Offerings. The Product Commerce includes core retail offerings, which encompass owned inventory and marketplace sales, as well as Rocket Fresh, which is its fresh grocery delivery service. This segment also generates revenue from advertising. On the other hand, Developing Offerings focuses on newer services such as Coupang Eats (restaurant ordering and delivery), Coupang Play (content streaming), fintech services, and retail operations in Taiwan.
Coupang, Inc. (NYSE:CPNG) on November 5th released its third-quarter results for fiscal 2024. During the quarter net revenue of the company improved 27% year-over-year to reach $7.9 billion and gross profits grew 45% during the same time to $2.3 billion. Revenue growth was led by robust growth across the board. The Product Commerce Segment saw 11% growth in active customers, thereby resulting in a 16% year-over-year increase in segment revenue.
More impressively Developing Offerings segment net revenues were $975 million, up 347% year-over-year. Management believes that this momentum of growth will continue throughout the year. Coupang, Inc. (NYSE:CPNG) is one of the best internet stocks to buy now and was held by 62 hedge funds in Q2 2024, as per Insider Monkey’s database.
Baron Fifth Avenue Growth Fund stated the following regarding Coupang, Inc. (NYSE:CPNG) in its first quarter 2024 investor letter:
“We also added to our position in the Korean e-commerce platform, Coupang, Inc. (NYSE:CPNG), as the company continues to execute at a high level, reporting strong financial results, with accelerating revenue growth – revenues were up 20% year-over-year in constant currency in the fourth quarter, 29% excluding the impact from Coupang’s Fulfillment and Logistics accounting change, driven by growth in its number of customers count (up 16% year-over-year), growth of its loyalty Wow members (up 27% year-over-year) and growth in spending by existing cohorts (with every cohort, including those who have used the platform for a long time, growing at least 15% year-over-year), which suggests continued wallet share gains for the company. While Coupang continues to gain market share, its attractive unit economics are beginning to appear in results, with adjusted EBITDA margins of its commerce segment reaching 7.1% in the fourth quarter (up 190bps year-over-year). Coupang is utilizing the growing profits from commerce to invest in emerging offerings such as Fulfillment and Logistics by Coupang (FLC), expansion into Taiwan (with revenues up 2 times in the last six months) and Coupang Eats, its food delivery network, which saw order volume increase by 2 times as well in the last nine months. In the last week or so, Coupang also announced a material 58% Wow membership price hike, which should flow through nicely to the bottom line, sending the stock higher by close to 20%.”
