Coupang share price volatile following blockbuster IPO
‘How did we ever live without Coupang?’
Better than Amazon?
To say that expectations for Coupang – the now $83 billion e-commerce giant – are elevated, may be understating it somewhat.
‘Coupang Is the Amazon.com of South Korea, but Maybe Even Better,’ wrote Eric J. Savitz from Barron’s.
A lofty comparison given Amazon’s relentless innovation, profitability and staying power. Not to mention its status as one of the world’s most valuable publicly listed companies.
Coupang’s also been attached to a number of high-profile investors, including Bill Ackman and Stanley Druckenmiller.
Masayoshi Son's SoftBank has made significant paper profits on their investment in the e-commerce player. SoftBank owns a 35% stake in the company, according to Bloomberg.
And to be fair, as the company notes in its own prospectus, it is already the largest e-commerce player in Korea.
Coupang share price: A volatile two sessions
Coupang saw its share price surge over 40% on its first day as a public company, finishing out last Thursday's session at $49.25 per share. The company had an IPO price of $35 per share.
In just two sessions, Coupang has already experienced significant levels of volatility. After trading as high as $69.00 per share, before hitting a low of $46.25 per shares.
Coupang last traded at $48.47 – implying a market capitalisation of $83 billion.
Coupang IPO: The Fundamentals
‘We are building the future of commerce.’
Despite already having a commanding presence in Korea, Coupang has its eyes set on the future.
‘While we have achieved significant scale, Coupang remains a small percentage of the total retail, grocery, consumer foodservice, and travel spend in the Korean market.’
The company estimates that the total value of those markets is expected to hit $534 billion by 2024; of which, e-commerce is expected to make up $206 billion of that estimate.
Indeed, Coupang already operates at a significant scale, reporting revenues of approximately $12.0 billion in 2020, representing a 90.8% increase on the year prior. Gross profits grew in step, rising 92.3% to hit $2.0 billion.
And the company's operating loss even tightened in the last year, coming in at negative $0.5 billion, opposed to a loss of $0.6 billion in 2019.
Looking forward, the company's CEO, Bom Suk Kim said:
'We are still far from realising the world we envision. We remain as energised as ever to transform the lives of every customer, employee, and merchant we touch, and to create a world where everyone wonders: How did we ever live without Coupang?'
Trade some of the most exciting stocks with IG – long and short today
Create an IG account or log in to your existing account to get started now.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.