Why Coupang Sank 33.3% in March
Shares of South Korean e-commerce company Coupang (NYSE: CPNG) lost one-third of their value in March, according to data from S&P Global Market Intelligence.
Coupang reported earnings during the beginning of the month that came up well short of analyst expectations, leading to a swift downturn after big gains in February. Then in the middle of March, large shareholder Softbank (OTC: SFTB.Y) sold a very large block of Coupang's shares. On the other hand, after this month's plunge, one analyst thought shares had fallen too far, and put the stock on his "Conviction Buy" list.
In the fourth quarter, Coupang grew revenue 34% to $5.1 billion, with net losses per share of $405 million. Both figures came in below expectations. While management put some of the blame on supply chain constraints that limited revenue -- that's a better problem than lower demand -- the market was in an unforgiving mood in March. That was especially true for profit-less growth stocks like Coupang.
Source Fool.com
