Coupang (CPNG) stock rallied late Tuesday after the South Korea focused e-commerce company reported fourth-quarter earnings that beat estimates, despite lower-than-forecasted sales.
Coupang said that it earned 8 cents per share on sales of $7.97 billion for the December-ended quarter. Analysts polled by FactSet projected the Seattle-based company would post earnings of 1 cent per share on sales of $8.14 billion. Sales increased 21% year-over-year.
↑ X NOW PLAYING Indexes Down But Stocks Mixed; Progressive, Dutch Bros, Palantir In FocusFounded in 2010 with its corporate headquarters in Seattle, Coupang operates the leading e-commerce marketplace in South Korea. With initial backing from SoftBank, Coupang has invested heavily in developing same-day delivery in the country.
Its offerings also include payments technology, food delivery and a streaming entertainment service. Coupang acquired U.K.-based global luxury goods marketplace Farfetch in January 2024.
Total customers for Coupang grew 10 to 22.8 million while revenue from its e-commerce business increased 9% to $6.9 billion.
Coupang's adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — increased 43% year-over-year to $421 million. Analysts were projecting $368 million.
On the stock market today, Coupang stock is more than 4% at 25.35 in recent after-hours trading.
Prior to earnings, Coupang stock fell 1.8% in Tuesday trading. Shares have gained 10% so far this year and 47% in the past 12 months.
Coupang was the IBD Stock of The Day for Tuesday. Prior to earnings, shares had formed a cup-with-handle chart pattern with a 25.67 entry, according to MarketSurge.
Coming into the report, Coupang stock had an IBD Composite Rating of 88 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Further, Coupang's IBD Relative Strength Rating was 84 out of 99. The RS Rating means that Coupang has outperformed 84% of all stocks in IBD's database over the past year.
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