Coupang Stock Plunge Driven by Mixed Earnings and $810M Volume Surges to 120th in Activity

Coupang (CPNG) experienced a 6.05% decline on August 6, 2025, with a trading volume of $0.81 billion—a 98.16% increase from the previous day—ranking 120th in market activity. The stock’s drop followed the release of its Q2 earnings, which highlighted mixed financial performance despite strong top-line growth.

The company reported Q2 revenue of $8.5 billion, a 16% year-over-year increase driven by its core Product Commerce segment. However, diluted EPS (GAAP) fell to $0.02, missing the $0.07 consensus estimate. Free cash flow (non-GAAP) plummeted 49% to $247 million, attributed to higher capital expenditures and working capital fluctuations. While Product Commerce showed robust gross margin expansion and customer growth, the Developing Offerings segment—encompassing food delivery, luxury fashion, and international expansion—reported a $235 million EBITDA loss, widening from $200 million in Q2 2024.

Investor sentiment was further dampened by an 84% effective tax rate and ongoing losses in international ventures, particularly in Taiwan. Analysts noted that strategic investments in high-growth areas like AI and automation have yet to offset near-term profitability challenges. The stock’s sharp intraday decline to $28.065 tested key technical levels, with bearish options activity intensifying as traders anticipated further volatility.

Backtest data on Coupang’s historical performance following a -6% intraday drop showed a 52.21% win rate over 30 days, with an average return of 0.96%. The maximum gain during the period reached 1.33% on day 59, indicating a potential short-to-medium-term recovery trend. However, the stock remains vulnerable to continued pressure from high expansion costs and tax inefficiencies.