Investors love initial public offerings (IPOs). There is excitement around a young company making its debut on the stock market, with investors looking for wild price swings and the famous IPO "pop" in order to get a quick return.

But what if I told you investing in IPOs was a terrible idea? The data on IPO returns is sobering, with an estimated two-thirds of them underperforming the broad market three years after going public. If you buy a stock right after its IPO, the odds are against you.

One company that fell victim to the IPO curse is Coupang (NYSE: CPNG). The e-commerce titan in South Korea is off 70% from all-time highs after going public in 2021. However, if you look at the underlying business fundamentals, Coupang is executing flawlessly right now. This was evident in its recent third-quarter earnings release.

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Source Fool.com