Coupang(CPNG) Shares Soar 0.56% on Strong 2025 Start

Coupang(CPNG) shares rose to their highest level since January 2022 today, with an intraday gain of 0.56%.

Over the past five years, the strategy of buying CPNG shares after they reached a high and holding for one week delivered strong returns. The strategy achieved an overall return of 91.25%, surpassing the benchmark return of 49.45% by 41.80%. Although the strategy had a maximum drawdown of -29.95% and a Sharpe ratio of 0.90, it maintained a relatively high CAGR of 31.36% and a volatility of 34.72%, indicating a reasonable risk-adjusted performance.

Coupang has reported a strong start to 2025, with consolidated revenue growth of 11% year-over-year, or 21% on a constant currency basis. The company has also improved its gross profit margin by 217 basis points to 29.3% and its adjusted EBITDA margin by nearly 90 basis points to 4.8%. Additionally, Coupang generated $1.5 billion in adjusted EBITDA and over $1 billion in free cash flow over the trailing 12 months.

Morgan Stanley has raised its price target for Coupang to $32 from $27 and maintained an Overweight rating. The firm also highlighted Coupang as a new Top Pick, citing strong execution and advantages such as immunity to tariff risks and benefits from a weaker U.S. dollar.

Coupang has announced a $1 billion share repurchase program, indicating confidence in its capital allocation strategy and commitment to generating long-term shareholder value. This strategic initiative is aimed at enhancing shareholder value and reflects the company's positive outlook for the future.