Coupang Stock Plunges 1.24 on Data Breach Fallout as Trading Volume Slumps 31.65 to 330M Ranking 411th in Activity

Market Snapshot

Coupang (CPNG) shares closed 1.24% lower on February 25, 2026, with a trading volume of $330 million, a 31.65% decline from the previous day’s volume. The company’s stock ranked 411th in terms of trading activity for the day, reflecting subdued investor engagement. This performance followed the announcement of a data breach involving 200,000 Taiwanese accounts, which overshadowed broader market dynamics and raised concerns about cybersecurity risks for the e-commerce giant.

Key Drivers

The recent data breach, attributed to unauthorized access by a former employee, emerged as the primary factor influencing Coupang’s stock decline. According to forensic investigations conducted by Mandiant and Palo Alto Networks, the breach exposed basic contact and order information—such as names, email addresses, phone numbers, and delivery addresses—for 200,000 Taiwanese accounts. Coupang emphasized that no financial data, login credentials, or government-issued IDs were accessed, and no evidence of data misuse was detected. However, the company faced public backlash earlier this month for initially downplaying the breach, claiming only 3,300 accounts were affected before revising its statement following a joint public-private probe. This inconsistency damaged trust, with critics labeling the initial response as “ill-intended” and “unfounded.”

Compounding the reputational damage, the breach occurred amid heightened scrutiny of Coupang’s cybersecurity practices. A separate investigation into the company’s South Korean operations revealed that 33.6 million accounts were exposed, with 148 million views of the delivery section of its website and the leakage of shared entrance door passwords. While Coupang offered $31 vouchers to affected Taiwanese users and pledged continued cooperation with regulatory bodies, the incident underscored vulnerabilities in its data protection framework. Investors appeared to factor in potential regulatory penalties, litigation risks, and long-term customer attrition, all of which could pressure the company’s financials despite its strong revenue growth in recent quarters.

The timing of the breach also coincided with anticipation of Coupang’s fourth-quarter earnings report, scheduled for later in the week. The company reported $9.27 billion in revenue for the prior quarter, a 17.8% year-on-year increase, driven by 24.7 million active buyers. However, the data breach could overshadow positive earnings momentum, particularly if the fallout impacts user retention or necessitates significant investments in cybersecurity upgrades. Analysts noted that while Coupang’s core business remains resilient, the incident could erode market confidence in its ability to manage operational risks, especially in markets like Taiwan and South Korea, where data privacy regulations are stringent.

Finally, the broader market context played a role in amplifying the stock’s decline. With investors already wary of tech-sector volatility and regulatory headwinds in the e-commerce space, Coupang’s breach added to a narrative of heightened risk. The 31.65% drop in trading volume suggested a flight to safety among investors, who may have opted to hold cash or shift funds to less vulnerable assets. While Coupang’s management has taken steps to mitigate the crisis—including engaging top-tier cybersecurity firms and offering compensation to affected users—the long-term impact on its stock valuation will depend on the resolution of legal proceedings, customer response, and the effectiveness of its remediation efforts. For now, the incident serves as a cautionary tale for tech companies navigating the delicate balance between growth and data security.