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

We came across a bullish thesis on Coupang, Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on CPNG. Coupang, Inc.’s share was trading at $28.98 as of August 18^th. CPNG’s trailing and forward P/E were 144.90 and 192.31 respectively according to Yahoo Finance.

Coupang is emerging as a high-confidence investment, similar to Nelnet, with a business model that functions as a well-orchestrated machine of e-commerce, delivery, and retail services. In Q2 2025, Coupang reported $8.5 billion in revenue, up 19% year-over-year in constant currency, with gross margins expanding to 30% and positive operating income. Its core Product Commerce segment in South Korea grew 26% year-over-year to $2.4 billion, achieving a 9% EBITDA margin, approaching the company’s long-term 10% target. Advertising scale and operational efficiency offer upside for further margin expansion, most of which can be converted to free cash flow given Coupang’s working capital advantage and limited maintenance capital expenditures.

International expansion, particularly in Taiwan, is accelerating rapidly. Developing Offerings, including Farfetch, food delivery, and other ancillary services, now constitute 13.3% of revenue. Taiwan alone grew 54% quarter-over-quarter in Q2, surpassing internal expectations, and is poised for continued acceleration in Q3. While capital spending to replicate South Korea’s operations in Taiwan will temporarily impact free cash flow, it is expected to drive strong long-term revenue growth and increased cash generation.

Coupang currently has a market capitalization of $51 billion, an enterprise value under $50 billion, and generated $32 billion in trailing twelve-month revenue. With a clear path toward $50 billion in revenue and potential for $100 billion annually if execution continues, the stock offers compelling long-term value. Assuming a normalized 10% free cash flow margin, Coupang appears attractively priced on a five-to-ten-year horizon. With a strong moat, operational momentum, and scalable international opportunities, the company represents a high-conviction investment, comprising 14.5% of the author’s portfolio, reflecting confidence in both resilience and growth potential.

Previously we covered a bullish thesis on Coupang, Inc. by Brian Coughlin in April 2025, which highlighted the company’s full-stack e-commerce infrastructure, Rocket WOW adoption, and expansion into high-margin categories. The stock has appreciated approximately 35% since then, reflecting strong execution. The thesis still stands as Coupang scales internationally. Stock Analysis Compilation shares a similar perspective but emphasizes recent Q2 financial results and Taiwan growth.

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Disclosure: None.