Coupang Plummets 5% Amid Legal Storm and Cybersecurity Fallout – What’s Next for CPNG?

Summary
• Coupang (CPNG) drops 4.98% to $20.875, hitting intraday low of $20.78
• RSI enters oversold territory at 27.5, signaling potential short-term rebound
• CEO departs amid South Korean data breach probe and class-action lawsuits
• Sector leader Amazon (AMZN) also declines 2.05%, amplifying retail sector jitters

Today’s sharp selloff in Coupang reflects a perfect storm of regulatory scrutiny, leadership uncertainty, and cybersecurity fallout. With the stock trading near its 52-week low of $19.02, investors are scrambling to assess the damage from a massive data breach affecting 33 million users and mounting legal challenges. The move has dragged down the broader internet retail sector, with Amazon also under pressure.

Data Breach and Leadership Turmoil Trigger Investor Flight
Coupang’s collapse stems from a confluence of legal and operational crises. A class-action lawsuit alleges the company concealed cybersecurity vulnerabilities that allowed a former employee to access sensitive customer data for nearly six months. The breach, disclosed in late November 2025, led to a $1.685 billion compensation plan and regulatory fines. Compounding the issue, interim CEO Harold Rogers left South Korea amid parliamentary scrutiny, raising questions about corporate governance. The stock’s intraday low of $20.78 aligns with its 52-week range, amplifying fears of further downside as legal deadlines loom and investor confidence erodes.

Internet Retail Sector Under Pressure as Amazon Drags Down Peers
The broader internet retail sector is under strain, with Amazon (AMZN) down 2.05% as global e-commerce faces regulatory and macroeconomic headwinds. While Coupang’s drop is more severe, the sector’s collective weakness underscores investor caution. Amazon’s dominance in digital commerce and its recent struggles with AI-driven logistics costs highlight systemic risks. Coupang’s niche in South Korea and its cybersecurity missteps, however, isolate it as a high-risk play compared to its diversified peers.

Options and ETFs for Navigating CPNG’s Volatility
• RSI: 46.48 (neutral, near oversold)
• MACD: -1.03 (bearish), Signal Line: -1.08 (bearish)
• Bollinger Bands: Upper $24.61, Middle $23.13, Lower $21.65 (price near lower band)
• 200D MA: $27.85 (price far below)
• Support/Resistance: 30D $22.40–22.51, 200D $28.30–28.57

Coupang’s technicals suggest a short-term bearish bias but hint at potential oversold rebound. Key levels to watch include the 52-week low of $19.02 and the 200-day moving average at $27.85. The stock’s implied volatility (IV) remains elevated, with options like CPNG20260123P20 and CPNG20260123P19.5 offering high leverage for bearish bets. Aggressive traders may also consider the SPDR S&P 500 ETF (SPY) for sector hedging, though no direct leveraged ETFs for CPNG exist.

Top Option 1: CPNG20260123P20
• Code: CPNG20260123P20
• Type: Put
• Strike Price: $20
• Expiration: 2026-01-23
• IV: 44.18% (moderate)
• Leverage Ratio: 83.52% (high)
• Delta: -0.26 (moderate sensitivity)
• Theta: -0.000998 (slow time decay)
• Gamma: 0.2127 (high sensitivity to price moves)
• Turnover: 23,304 (liquid)

This put option stands out for its high leverage and gamma, making it ideal for a 5% downside scenario. If CPNG drops to $19.43 (5% below $20.875), the payoff would be $0.57 per share, offering a 69% return on the premium paid. The moderate IV ensures it’s not overpriced for a short-term bet.

Top Option 2: CPNG20260123P19.5
• Code: CPNG20260123P19.5
• Type: Put
• Strike Price: $19.5
• Expiration: 2026-01-23
• IV: 39.87% (moderate)
• Leverage Ratio: 208.80% (very high)
• Delta: -0.1386 (moderate sensitivity)
• Theta: -0.002715 (slow time decay)
• Gamma: 0.1605 (high sensitivity)
• Turnover: 1,210 (liquid)

This contract offers explosive leverage for a deeper decline. A 5% move to $19.88 would yield a $0.62 payoff, translating to a 316% return. The high leverage ratio and moderate IV make it a compelling choice for aggressive bearish positioning. However, its delta is lower than the first option, requiring a sharper price drop to activate.

Action Alert: With CPNG near its 52-week low and legal risks unresolved, short-term bearish options like CPNG20260123P20 and CPNG20260123P19.5 offer high-reward setups. Aggressive bulls may consider a small long position near $20.78 if the stock tests its lower Bollinger Band, but the near-term outlook remains bearish.

Backtest Coupang Stock Performance
The performance of CPNG (Coupang) after experiencing a -5% intraday plunge from 2022 to the present has shown mixed results in the backtest. While the stock managed to recover and even surpass its initial price in some cases, the overall returns were relatively modest, with a maximum return of only 4.26% over a 30-day period.

Act Now: CPNG at Pivotal Crossroads – Short-Term Volatility Ahead
Coupang’s near-term trajectory hinges on the resolution of its cybersecurity lawsuits and regulatory fines. The stock’s technicals and options activity suggest continued volatility, with key support at $19.02 and resistance at $23.13. Investors should monitor the SPDR S&P 500 ETF (SPY) for broader market cues and Amazon’s performance as a sector barometer. With the lead plaintiff deadline for the class-action lawsuit approaching on February 17, 2026, and the CEO’s legal status unresolved, CPNG remains a high-risk, high-reward trade. Aggressive bearish options and a cautious approach to long positions are warranted until clarity emerges.