Coupang, Inc. (CPNG): A Bull Case Theory

We came across a bullish thesis on Coupang, Inc. (CPNG) on GabGrowth’s Substack. In this article, we will summarize the bulls’ thesis on CPNG. Coupang, Inc. (CPNG)’s share was trading at $28.47 as of 9^th June. CPNG’s trailing and forward P/E were 203.36 and 129.87 respectively according to Yahoo Finance.

Coupang, founded in 2010 by Harvard dropout Bom Kim, has transformed from a daily-deals startup into South Korea’s largest and most advanced e-commerce and logistics powerhouse, often dubbed the “Amazon of Korea,” though this comparison understates its broad ecosystem. Kim’s vision began with a focus on viral bargain offerings, quickly growing Coupang’s customer base to millions.

However, recognizing the unsustainable nature of a deal-driven marketplace, Kim made a bold pivot in 2014, transforming Coupang into a fully integrated e-commerce retailer with its own logistics network. This shift gave birth to “Rocket Delivery,” an ultra-fast, reliable shipping service that revolutionized Korean online shopping by guaranteeing same-day or next-day delivery.

Heavy capital infusion from investors like Sequoia, BlackRock, and SoftBank fueled rapid expansion, including hundreds of fulfillment centers that brought 70% of South Koreans within 10 minutes of Coupang’s warehouses. By 2018, the company neared $5 billion in revenue, dominating over a third of Korea’s e-commerce market. Simultaneously, Coupang diversified, launching Rocket Fresh for grocery delivery, Coupang Eats in the food delivery space, Coupang Pay for fintech services, and Coupang Play, a streaming platform bundled with its popular Rocket WOW subscription program. Rocket WOW, similar to Amazon Prime, drives customer loyalty and monetization, boasting around 15 million members by the end of 2024 despite price hikes.

In 2021, Coupang went public on the NYSE in a $4.6 billion IPO, marking the largest U.S. tech IPO that year and affirming its dominant market position. Though international expansions into Japan faltered, Taiwan remains a key overseas market. Coupang’s careful but ambitious moves continue, including a recent $500 million acquisition of Farfetch’s luxury fashion marketplace assets, signaling global ambitions beyond Korea. With a vertically integrated logistics network, fintech innovations, and a growing ecosystem, Coupang exemplifies founder-led, long-term strategic vision — reshaping retail, delivery, and digital services in Korea and aiming to extend its footprint globally.

Previously, we highlighted a bullish thesis on Coupang (CPNG) by Brian Coughlin on Substack, emphasizing the company’s vertically integrated logistics, AI-powered fulfillment, and automation-driven margin expansion. The stock has seen a 33% appreciation since the coverage. GabGrowth focuses on Coupang’s broad ecosystem growth, including fintech, food delivery, and global expansion. While both agree on Coupang’s dominance in Korean e-commerce, Coughlin underscores operational efficiency as its key moat, whereas GabGrowth highlights strategic diversification and international ambitions.

Coupang, Inc. (CPNG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held CPNG at the end of the first quarter which was 87 in the previous quarter. While we acknowledge the risk and potential of CPNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.