15 Best Growth Stocks to Buy for the Next 3 Years

6. Coupang Inc. (NYSE:CPNG)

3-Year Revenue CAGR: 18.03%

Number of Hedge Fund Holders: 87

Coupang Inc. (NYSE:CPNG) owns and operates retail businesses through its mobile applications and internet websites in South Korea and internationally. It operates through the Product Commerce and Developing Offerings segments. It also performs operations and support services in the US, South Korea, Taiwan, Singapore, China, Japan, and India.

The company’s Product Commerce segment grew by 9% year-over-year in Q4 2024. The segment also showed gross profit growth of 31% year-over-year to $2.3 billion, with a gross profit margin of 32.7%. This is attributed to the increased efficiencies in operations, which include greater utilization of automation and technology, supply chain optimization, and the scaling of margin-accretive offerings.

The number of active customers in the Product Commerce segment grew by 10% year-over-year, and the average spend per active customer saw a constant currency increase of 6%. For 2025, Coupang Inc. (NYSE:CPNG) anticipates that the Product Commerce gross profit will grow at a faster rate than its constant currency revenue growth, due to the continued expansion of its FLC (Fulfillment & Logistics by Coupang) offering.

Baron Fifth Avenue Growth Fund stated the following regarding Coupang, Inc. (NYSE:CPNG) in its Q4 2024 investor letter:

“Shares of Coupang, Inc. (NYSE:CPNG), Korea’s largest e-commerce platform, corrected 10.5% in the fourth quarter (even though they finished 2024 up 33.9%). While the company delivered solid quarterly results with 27% year-on-year revenue growth with Farfetch and other initiative losses narrowing significantly, its product commerce EBITDA margin missed expectations due to a temporarily elevated spending on technology and automation. Sluggish domestic consumption in Korea, with the e-commerce market experiencing flattish to negative growth, and political uncertainty stemming from President Yoon’s declaration of martial law and subsequent impeachment, further weighed on the stock. Despite these short-term challenges, we maintain a positive outlook on Coupang’s long-term market share expansion and margin growth trajectory, and view Coupang as one of the most competitively advantaged e-commerce businesses globally, with significant runway for both revenue and earnings growth.”