What Happened?
Shares of online platform company Coupang (NYSE: CPNG) fell 6% in the morning session after the company reported third-quarter results that revealed a slowdown in a key growth metric.
The South Korean e-commerce giant posted strong third-quarter results, with revenue of $9.27 billion and earnings per share of $0.05, surpassing analyst expectations. Despite these headline beats, investors appeared to focus on decelerating user growth. Coupang's active customers grew 8.9% year-on-year to 24.7 million, but this was a notable slowdown from the 11.2% average annual growth seen over the prior two years. This suggested the company's new initiatives were not yet accelerating buyer growth. Furthermore, the earnings report highlighted that the stock's high valuation already reflected significant optimism, leaving it vulnerable to any signs of slowing momentum.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Coupang? Access our full analysis report here.
What Is The Market Telling Us
Coupang’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 26 days ago when the stock dropped 3.1% on the news that President Trump threatened to impose "massive" new tariffs on Chinese imports, reigniting trade war fears. The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-rich Nasdaq Composite fell 1.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies. The sell-off marked a significant reversal from the morning's slight gains, highlighting the market's sensitivity to geopolitical trade developments.
Coupang is up 33.8% since the beginning of the year, but at $29.83 per share, it is still trading 11% below its 52-week high of $33.53 from September 2025. Investors who bought $1,000 worth of Coupang’s shares at the IPO in March 2021 would now be looking at an investment worth $605.58.
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