Why Coupang Stock Cratered on Thursday
Shares of Coupang (NYSE: CPNG) got crushed on Thursday, cratering as much as 21.5%. As of 2:23 p.m., the stock was still down 19%.
The major market indexes were already under pressure, with the S&P 500 and the Nasdaq Composite slumping 0.6% and 1.1%, respectively. The catalyst that sent the South Korean e-commerce platform plunging even further was a rumor that the company will be issuing additional shares. However, even if the rumor turns out to be true, the sell-off is wildly overdone.
Rumors emerged early in the day that Coupang would be selling millions of additional shares, according to a report by The Fly. The story cited Bloomberg's Divya Balji reporting that Coupang had enlisted the aid of investment bank Goldman Sachs to sell a block of 50 million shares, though the story was unclear as to whether these were newly issued shares or a sale by an insider or early investor.
Source Fool.com
