Coupang (CPNG) Plunges 6.6% on Q3 Earnings Jolt: Is This a Buying Opportunity or a Warning Signal?

Summary
• Coupang (CPNG) drops 6.6% to $30.015, its worst single-day decline since March 2025
• Q3 revenue beats $9.27B but active user growth slows to 8.9% YoY
• Options chain shows heavy call buying at $30–$30.50 strike prices
• RSI at 61 and MACD crossover signal potential short-term volatility

Today’s 6.6% plunge in Coupang (CPNG) has sent shockwaves through the e-commerce sector, with the stock trading at $30.015 as of 6:33 PM EST. The sharp decline follows mixed Q3 earnings results, where revenue growth outperformed expectations but user acquisition metrics raised red flags. With the stock trading 11% below its 52-week high and a dynamic P/E of 175x, investors are scrambling to decipher whether this is a correction in a high-growth story or a warning of waning momentum.

Q3 Earnings Spark Profit Concerns as User Growth Slows
Coupang’s 6.6% drop stems from a critical disconnect between financial performance and growth metrics. While Q3 revenue surged 18% to $9.27 billion and operating income rose to $162 million, the 8.9% year-on-year increase in active customers (24.7 million) marked a significant slowdown from the 11.2% average growth over the prior two years. This deceleration signals waning traction in Coupang’s core e-commerce business, particularly as its high 175x P/E ratio already priced in aggressive future expectations. The market’s overreaction—despite a 20% revenue beat—reflects growing skepticism about the sustainability of Coupang’s margin expansion amid intensified competition from Alibaba’s AliExpress and PDD’s Temu in the South Korean market.

Internet Retail Sector Mixed as Amazon Rises Amid Coupang's Slide
The broader internet retail sector showed divergent performance, with Amazon (AMZN) rising 0.43% despite Coupang’s collapse. This contrast highlights Amazon’s entrenched dominance in global e-commerce, while Coupang’s regional focus and high valuation make it more vulnerable to growth headwinds. Naver’s recent launch of Naver Plus Store further intensifies competition in South Korea, pressuring Coupang’s market share. While Amazon’s scale and diversified services provide a buffer, Coupang’s reliance on rapid user acquisition and margin-driven strategies leaves it exposed to decelerating growth trends.

Bearish Options and ETFs Highlight Volatility Playbook
• 200-day MA: $27.35 (below current price) • RSI: 61 (neutral) • MACD: 0.088 (bullish crossover) • Bollinger Bands: $30.92–$32.48 • 30D Support: $31.13–$31.16 • 200D Support: $28.30–$28.57

Technical indicators suggest a volatile near-term outlook. The RSI at 61 and MACD crossover above the signal line (0.048) hint at potential short-term buying pressure, but the stock’s 6.6% drop has already triggered defensive positioning. For traders, the key levels to watch are the 30D support at $31.13 and 200D support at $28.30. The options chain reveals two high-conviction bearish plays:

• CPNG20251114C30 (Call, $30 strike, Nov 14): IV 31.98%, Leverage 46.15%, Delta 0.519, Theta -0.0928, Gamma 0.251. This contract offers moderate leverage with high gamma sensitivity to price swings, ideal for a volatile bounce.
• CPNG20251114C30.5 (Call, $30.50 strike, Nov 14): IV 32.90%, Leverage 66.67%, Delta 0.399, Theta -0.0788, Gamma 0.236. The higher leverage ratio (66.67%) and mid-range IV make this a speculative play on a sharp rebound.

Under a 5% downside scenario (targeting $28.51), the CPNG20251114C30 would see a 74.9% price drop, while the CPNG20251114C30.5 would lose 41.6%. Aggressive bulls may consider the CPNG20251121C29 (Call, $29 strike, Nov 21) as a low-cost lottery ticket if the stock retests $29.50.

Backtest Coupang Stock Performance
Here is the requested back-test, displayed in the interactive module below. Key points to note:• Buying CPNG on the close of any session that finishes ≥ 7 % below its open has generated a small positive return since 2022, but the accompanying drawdowns are sizable, resulting in a modest risk-adjusted profile. • The strategy’s stop-loss (-8 %), take-profit (+10 %) and 20-day maximum holding window were selected as practical default values to bound risk and to capture short-term mean-reversion potential after sharp sell-offs. • You may improve the payoff by experimenting with wider/tighter exits or adding secondary filters (e.g., volume spikes, market regime screens) to avoid deteriorating price trends.Please explore the results and, if you’d like to iterate on the parameters or add further conditions, just let me know.

Coupang’s 6.6% Drop: A Tactical Entry or a Warning Shot?
Coupang’s sharp decline reflects a market recalibration of its growth narrative, with slowing user acquisition and a stretched 175x P/E ratio amplifying volatility. While the stock’s 30D MA at $31.13 and 200D MA at $27.35 suggest a potential rebound, the options chain and technical indicators point to continued near-term turbulence. Investors should monitor the $30.50–$31.13 range for a potential reversal or breakdown. With Amazon (AMZN) rising 0.43% as the sector leader, Coupang’s ability to differentiate its ecosystem will be critical. For now, a disciplined approach—using the drop to secure long-term exposure while hedging with bearish options—offers the most balanced strategy.