Is CPNG a good stock to buy? We came across a bullish thesis on Coupang, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on CPNG. Coupang, Inc.’s share was trading at $20.45 as of March 16th. CPNG’s trailing and forward P/E were 185.91 and 35.34, respectively according to Yahoo Finance.
Coupang, Inc., together with its subsidiaries, owns and operates retail business through its mobile applications and internet websites in South Korea and internationally. CPNG continues to demonstrate steady growth and expanding margins despite absorbing significant international investment, delivering $9.3 billion in revenue for Q3 2025, up 18% year over year, or 20% in constant currency. Gross profit rose 20% to $2.7 billion, with gross margin expanding 50 basis points to 29.4%, though sequentially lower due to seasonal costs.
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The company’s product commerce segment remains the core earnings driver, generating $8.0 billion in revenue, up 16%, with gross profit rising 24% to $2.6 billion and gross margin expanding over 210 basis points to 32.1%. Segment-adjusted EBITDA increased 50% to $705 million, representing an 8.8% margin.
Growth in developing offerings, particularly in Taiwan, weighed on near-term results, with revenue up 32% but adjusted EBITDA losses widening to $292 million, largely due to upfront investments in establishing market presence. Coupang’s competitive strength in Korea is anchored by its logistics scale, operational efficiency, and strong customer loyalty, creating a durable moat that supports consistent profitability.
Early adoption trends in Taiwan mirror the company’s initial expansion in Korea, but require heavy investment to scale, introducing execution risk and near-term margin pressure. Management expects approximately 20% constant-currency revenue growth moving forward, balancing Korea’s profitable operations against international expansion costs, while continuing to target annual margin expansion.
Overall, Coupang presents a compelling growth story with a resilient core business in Korea, substantial upside potential from international markets, and an experienced management team capable of navigating the challenges of scaling operations abroad, offering investors an attractive combination of growth and margin expansion over the medium term.
Previously, we covered a bullish thesis on Coupang, Inc. (CPNG) by Brian Coughlin in April 2025, which highlighted its vertically integrated logistics, customer-centric operations, and expansion into high-margin categories. CPNG’s stock price has depreciated by approximately 4.39% since our coverage. Sergey shares a similar view but emphasizes recent revenue growth, margin expansion, and early adoption trends in Taiwan, providing updated insight on international execution.
Coupang, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held CPNG at the end of the fourth quarter which was 83 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 doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CPNG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
