Where Will Coupang Stock Be in 1 Year?
Coupang's (NYSE: CPNG) stock surged nearly 11% during after-hours trading on Nov. 9 in response to its third-quarter earnings report. The South Korean e-commerce leader's revenue rose 10% year over year (and increased 27% on a constant currency basis) to $5.1 billion, which matched analysts' estimates.
But more importantly, Coupang surprised investors with its first quarterly profit ever. It generated $91 million in net income, compared to a loss of $324 million a year earlier, while its earnings of $0.05 per share cleared the consensus forecast by $0.08. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $195 million also represented a massive improvement from its adjusted EBITDA loss of $207 million a year ago.
Coupang's stable growth and rising profits were encouraging, but its stock remains nearly 50% below its initial public offering (IPO) price of $35. Let's examine its growth rates and valuations to see if it can recoup more of those losses over the next 12 months.
Source Fool.com
