Investors are showing increased interest in Coupang (CPNG, Financial), as evidenced by a notable uptick in options trading activity. A total of 6,141 call options have changed hands, which is nearly double the expected volume, signifying heightened market activity. This has caused the implied volatility to rise by almost 2 points, reaching 51.05%.
The most actively traded options are the January 2026 expiration 27 call and 25 call strikes, collectively accounting for about 4,000 contracts. The activity in these options reflects a strong bullish sentiment, as indicated by an extremely low Put/Call Ratio of 0.02, suggesting that traders are overwhelmingly gearing up for a potential rise in the stock price.
Investors are likely positioning themselves ahead of Coupang's earnings announcement scheduled for May 6th, anticipating positive developments that could further impact the stock movements.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Coupang Inc (CPNG, Financial) is $29.81 with a high estimate of $35.00 and a low estimate of $24.00. The average target implies an upside of 28.65% from the current price of $23.17. More detailed estimate data can be found on the Coupang Inc (CPNG) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Coupang Inc's (CPNG, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Coupang Inc (CPNG, Financial) in one year is $26.63, suggesting a upside of 14.93% from the current price of $23.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Coupang Inc (CPNG) Summary page.
CPNG Key Business Developments
Release Date: February 25, 2025
- Net Revenue Growth: 21% year over year; 14% excluding Farfetch; 28% in constant currency; 21% excluding Farfetch in constant currency.
- Gross Profit Growth: 48% year over year; 29% excluding Farfetch and fire insurance gain.
- Adjusted EBITDA: $1.4 billion for the year; 4.5% margin.
- Free Cash Flow: Over $1 billion generated.
- Product Commerce Revenue Growth: 9% year over year; 16% in constant currency.
- Developing Offerings Revenue Growth: 300% year over year; 124% excluding Farfetch; 136% in constant currency excluding Farfetch.
- Gross Profit Margin: 31.3% for the quarter; 29% excluding Farfetch and insurance gain.
- Net Income: $156 million attributable to Coupang stockholders; $24 million excluding fire insurance gain.
- Adjusted EBITDA Margin: 5.3% for the quarter; 7.8% for Product Commerce segment.
- Operating Cash Flow: $1.9 billion for the year.
- Effective Income Tax Rate: 53% for the quarter; cash tax obligation closer to 20% excluding Farfetch losses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Coupang Inc (CPNG, Financial) achieved a 23% increase in net revenues, excluding Farfetch, with a strong 29% growth in gross profit.
- The company generated $1.4 billion in adjusted EBITDA, expanding margins to 4.5%, and delivered over $1 billion in free cash flow.
- Coupang Inc (CPNG) made significant improvements in fulfillment and logistics, increasing same-day or early morning deliveries by 45%.
- The company expanded its Rocket Delivery service to include next-day installation services for large items, enhancing customer convenience.
- Coupang Inc (CPNG) successfully launched its WOW membership program in Taiwan, showing strong international growth potential.
Negative Points
- The weakening of the Korean won against the US dollar impacted revenue growth, necessitating constant currency adjustments.
- OG&A expenses increased due to the inclusion of Farfetch and related acquisition and restructuring costs.
- The effective income tax rate was high at 53%, driven by consolidation of pre-tax losses in Farfetch and non-deductible expenses.
- Developing offerings segment incurred adjusted EBITDA losses, with expectations of $650 million to $750 million losses in 2025.
- Investment intensity in technology and infrastructure is expected to continue, impacting short-term profitability.
