Coupang's 6.15% Plunge: Earnings Optimism Crumbles Amid Margin Woes and Sector Divergence

Summary
• Coupang (CPNG) tumbles 6.15% to $30.155, erasing $2.0B in market cap
• Q3 revenue hits $9.3B (+18% YoY), but active customer growth slows to 8.9%
• Developing Offerings segment posts $292M EBITDA loss amid aggressive Taiwan expansion
• Internet Retail sector leader Amazon (AMZN) dips 0.02% as Coupang diverges sharply

Today’s selloff reflects a stark disconnect between Coupang’s headline earnings and underlying operational challenges. While the company celebrated $9.3B in revenue and 4.5% EBITDA margins, investors fixated on decelerating user growth and a $292M loss in its high-growth Taiwan operations. The stock’s 6.15% drop—its largest intraday decline since March 2025—underscores market skepticism about sustaining margins amid rising costs and geopolitical headwinds.

Earnings Optimism Crumbles: Margins and User Growth Concerns
Coupang’s Q3 earnings report revealed a fragile balance between revenue momentum and operational strain. While $9.3B in revenue (+18% YoY) and 29.4% gross profit margins impressed, the 8.9% active customer growth (24.7M) marked a sharp slowdown from prior years. The Developing Offerings segment, crucial for long-term expansion, posted a $292M EBITDA loss as Coupang ramps up investments in Taiwan—a market with lower e-commerce penetration. Compounding concerns, the 42% effective tax rate and $292M loss in non-core segments signaled to investors that margin expansion may be temporary. The CEO’s admission that Taiwan’s logistics rollout is 'early stage' further stoked fears about capital intensity, triggering a sell-off as the market recalibrated expectations for near-term profitability.

Internet Retail Sector Mixed as Amazon Stands Steady Amid Coupang's Slide
While Coupang’s shares cratered, the broader Internet Retail sector showed resilience. Amazon (AMZN) dipped 0.02% despite Coupang’s sharp decline, reflecting divergent investor sentiment. Amazon’s scale and diversified revenue streams (AWS, Prime) insulate it from the same margin pressures facing Coupang’s hyper-focused e-commerce model. Meanwhile, peers like Walmart (WMT) and Target (TGT) reported stable same-store sales, highlighting the sector’s bifurcation between high-growth, low-margin disruptors and established players with pricing power. Coupang’s 6.15% drop contrasts sharply with Amazon’s muted move, underscoring the market’s skepticism about Coupang’s ability to replicate its Korean success in less mature markets like Taiwan.

Options Playbook: Capitalizing on Volatility and Key Levels
• 200-day average: $27.35 (below current price)
• RSI: 60.98 (neutral to overbought)
• MACD: 0.088 (bullish divergence)
• Bollinger Bands: $30.92 (lower band) to $32.48 (upper band)
• 30D support/resistance: $31.13–$31.16

Coupang’s technicals suggest a volatile near-term path. The stock is testing its 200-day average ($27.35) and faces critical resistance at $31.16 (30D support). With RSI hovering near overbought territory and MACD showing bullish divergence, short-term traders may find opportunities in range-bound setups. The 11/14 and 11/21 options chains offer high-leverage plays for bearish and bullish scenarios.

Top Options Plays
1. CPNG20251114C30
• Type: Call
• Strike: $30
• Expiry: 2025-11-14
• IV: 25.68% (moderate)
• LVR: 46.50% (high)
• Delta: 0.588 (moderate sensitivity)
• Theta: -0.095 (high time decay)
• Gamma: 0.303 (high sensitivity to price swings)
• Turnover: $8,613
• This call option offers aggressive leverage for a potential rebound above $31.16. With high gamma and moderate delta, it benefits from sharp price swings. A 5% downside scenario (to $28.65) would yield a 46.5% return if the stock recovers to $30.

2. CPNG20251121P29
• Type: Put
• Strike: $29
• Expiry: 2025-11-21
• IV: 36.22% (high)
• LVR: 71.96% (very high)
• Delta: -0.277 (moderate bearish exposure)
• Theta: -0.002 (low time decay)
• Gamma: 0.142 (moderate sensitivity)
• Turnover: $569
• This put option provides high leverage for a breakdown below $29.42 (intraday low). The low theta and high LVR make it ideal for a slow, sustained decline. A 5% downside scenario (to $28.65) would trigger a 71.96% return if the stock closes below $29.

Action Insight: Aggressive bulls should target a break above $31.16 with CPNG20251114C30, while bears may short CPNG20251121P29 if support at $29.42 fails.

Backtest Coupang Stock Performance
Below is the event-backtest module that shows how Coupang (CPNG) performed after every intraday plunge of −6 % or worse since 2022.Key takeaways:• 33 plunges of 6 %+ occurred from Feb-2022 to Feb-2025. • Median return after 5 trading days is ≈ −1.4 %; the pattern remains negative out to 30 days (≈ −7.3 %) and is statistically significant from day 8 onward. • Win-rate never exceeds 45 %; it falls below one-third on many days beyond two weeks. • Overall, buying immediately after these sharp intraday drops has not been a profitable strategy for CPNG over the tested period.You can explore the full interactive charts and tables in the module above.

Coupang at Crossroads: Watch $29.42 Support and Sector Divergence
Coupang’s 6.15% drop reflects a critical inflection point between growth optimism and margin realism. The stock’s ability to hold above $29.42 (intraday low) will determine whether this is a buying opportunity or a deeper correction. Investors should monitor the Developing Offerings segment’s EBITDA trajectory and Taiwan’s customer adoption rates, which could either validate or undermine the company’s long-term thesis. Meanwhile, Amazon’s stable performance highlights the sector’s bifurcation—Coupang’s high-growth model remains vulnerable to margin pressures absent structural cost advantages. For now, key levels at $29.42 and $31.16 define the immediate outlook. Act now: Short-term traders should prioritize the CPNG20251114C30 call for a rebound or the CPNG20251121P29 put for a breakdown, while long-term investors may wait for clearer signals on margin sustainability.