With over 3,000 brands and 4 million customers, Farfetch has been an innovator in the luxury e-commerce niche, but has yet to reach steady profitability. After launching full force in Taiwan in October 2022, the company continues to see adoption and growth rates there exceeding those seen when it launched its operations in South Korea. With its customer count and revenue more than doubling in the last two quarters alone, Coupang’s Taiwanese operations should reach profitability sooner than its South Korean unit did, according to management.
Consensus Price Target
This rapid growth seems to be a testament to the broader ecosystem Coupang provides to its sellers and highlights the value of its offerings. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. Compared to the Zacks Consensus Estimate of $7.84 billion, the reported revenues represent a surprise of +0.37%.
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company’s earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Coupang scored higher than 85% of companies evaluated by MarketBeat, and ranked 71st out of 208 stocks in the retail/wholesale sector.
Rocket Wow
- Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea.
- The consensus among Wall Street equities research analysts is that investors should «moderate buy» CPNG shares.
- For the current quarter, Coupang is expected to post break-even earnings per share, indicating a change of -100% from the year-ago quarter.
Though far from a no-brainer acquisition, the purchase has created an intriguing risk-reward proposition. South Koreans are the world’s biggest spenders on luxury goods on a per-capita basis, so combining Farfetch’s luxury strategy with Coupang’s e-commerce know-how (and financial strengths) could prove successful. In addition to expanding geographically, Coupang is testing adjacent product verticals. It recently acquired the beleaguered luxury goods platform Farfetch for $500 million.
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CPNG Stock News Headlines
Without considering a stock’s valuation, no investment decision can be efficient. In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects. The consensus earnings estimate of -$0.03 for the current fiscal year indicates a year-over-year change of -111.5%.
analyst rating
However, I’d argue that this valuation looks quite reasonable, considering the company’s rising free cash flow margin (now 10%) and its 2% net forex trading apps income margin (adjusted for a one-off tax benefit). Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. According to the research reports of 9 Wall Street equities research analysts, the average twelve-month stock price forecast for Coupang is $27.56, with a high forecast of $32.00 and a low forecast of $21.00. Coupang reported revenues of $7.87 billion in the last reported quarter, representing a year-over-year change of +27.2%.
Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please atfx broker review see Barchart’s disclaimer. Coupang (CPNG) raised $3.4 billion in an initial public offering on Thursday, March 11th 2021. Goldman Sachs, Allen & Co., J.P.Morgan and Citigroup acted as the underwriters for the IPO and HSBC, Deutsche Bank Securities, UBS Investment Bank, Mizuho Securities and CLSA were co-managers. Select to analyze similar companies using key performance metrics; select up to 4 stocks. Coupang is graded C on this front, indicating that it is trading at par with its peers.