Coupang: Is It Attractive Following The Sell-Off?

Jonathan WeberInvesting GroupFollow5ShareSavePlay(9min)CommentsSummaryCoupang, Inc. faces headwinds from a major data breach and CEO resignation, driving recent share price declines.Despite 18% revenue growth and nearly 50% operating profit growth in Q3, CPNG trades at a steep ~130x forward earnings.Gross margin and operating leverage improvements are positives, but ongoing dilution and a 3% free cash flow yield temper enthusiasm.I remain neutral on CPNG given high valuation and uncertainties; further pullbacks could improve the risk/reward profile. Sundry Photography/iStock Editorial via Getty Images Article Thesis Coupang, Inc. (CPNG) is an e-commerce player that has seen its shares fall considerably over the last couple of weeks on the back of a data breach and its CEOThis article was written byJonathan Weber53.37K FollowersFollowJonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally. He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.