Investors in Coupang (NYSE: CPNG) have faced challenges since the company went public in 2021. Despite initial gains, stock performance has been lackluster. However, some top investors are still interested in Coupang for several reasons. The e-commerce giant recently reported its first profitable year after experiencing significant revenue growth in 2020 and 2021, while also investing heavily in infrastructure.
In 2022, Coupang’s growth slowed as consumers returned to traditional shopping habits, resulting in a revenue increase of only 12%. The company had to adapt to changing market conditions and investor preferences by focusing on profitability rather than just growth.
Coupang’s efforts in 2023 led to an 18% growth in revenue and a substantial decline in losses. The company’s profitability is expected to continue growing through strategies such as increasing market share, launching new services, and expanding overseas. Additionally, ongoing investments in technology and infrastructure are improving efficiency and operating leverage, leading to higher margins.
While early investors may have faced challenges, Coupang has proved its viability and potential for profit growth. Investors with a high risk tolerance may consider adding this growth stock to their portfolios, as it is well-positioned to continue growing its profits over time.
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