Josh Brown’s New Best Stock Idea: a South Korean Ecommerce Company

Coupang, Inc. (NYSE:CPNG) is one of the 10 Stocks to Watch in July as AI Enthusiasm Returns.

Josh Brown, CEO of Ritholtz Wealth Management, recently pitched Coupang as one of the best stocks during a program on CNBC. Here is why Brown likes the stock.

“Coupang Inc (NYSE:CPNG) is on the best stocks in the market list because it’s a Korean business but it’s incorporated and based in Seattle. So this is a US company with a US founder, but most of their business is being the Amazon of South Korea. The best comp here is  MercadoLibre. MELI is up 9,000% plus since its IPO. This company is probably 5 years behind MELI in terms of its margins, its earnings, its growth. So there’s still a lot of opportunity. It came public in ’21. Everybody forgot about it because the whole growth stock market crashed for a year. But now it’s working its way back, and the reality is that it’s not terribly expensive. It’s in a 40% drawdown from that ’21 high. Barclays has a $36 target, and it’s a best stock. It’s breaking out. You’ve got a 50- to 200-day moving average crossover, which signals short-term momentum, and I think the stock probably gets itself into the mid-30s at a minimum based on the breakout that we’ve seen.”

Photo by Mohamed Hadji on Unsplash

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.”

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