Coupang Surges 28 YTD but Ranks 422nd in Trading Volume Amid Earnings Discrepancies and Strategic Losses

On August 12, 2025, Coupang (CPNG) rose 1.70%, with a trading volume of $0.25 billion, ranking 422nd in market activity. The stock has surged 28.03% year-to-date, outpacing the S&P 500’s 9.59% gain. Recent performance reflects mixed fundamentals, with a 16% year-over-year revenue jump to $8.5 billion in Q2 2025, driven by its core Product Commerce segment. However, diluted earnings per share (GAAP) of $0.02 fell short of the $0.07 forecast, pressured by rising costs and losses in its Developing Offerings unit. Free cash flow (non-GAAP) declined 49% to $247 million, citing higher capital expenditures and working capital fluctuations.

The Product Commerce segment, accounting for 86% of revenue, saw robust growth in active customers (23.9 million, +10% YoY) and a 2.27 percentage point improvement in gross profit margin to 32.6%. Strategic investments in automation, AI, and logistics infrastructure bolstered operational efficiency. Conversely, the Developing Offerings segment, including food delivery and luxury e-commerce, reported a $235 million adjusted EBITDA loss (non-GAAP), widening from $200 million in Q2 2024. Expansion into Taiwan and the Farfetch acquisition remain capital-intensive, with customer selection in Taiwan surging 500% year-over-year.

Management emphasized a 50–55% effective tax rate for 2025 due to overseas losses and non-deductible expenses, while forecasting normalized cash flow trends by year-end. Analysts highlight Coupang’s strong balance sheet, with $6.8 billion in cash and cash equivalents, but caution that near-term profitability hinges on scaling its high-growth initiatives. The stock’s 1.16 beta and 140.70 P/E ratio reflect investor optimism about long-term expansion, albeit with near-term volatility risks.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a $2,550 profit from 2022 to the present. However, the maximum drawdown of -15.2% on October 27, 2022, underscores the strategy’s volatility and periods of significant loss.