CPNG Should I Buy
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Coupang Inc (CPNG) is not a strong buy at the moment for a beginner investor with a long-term perspective. The stock is facing significant negative catalysts, including a data breach scandal, legal issues, and bearish technical indicators. While the company has shown solid financial growth in the latest quarter, the ongoing controversies and bearish sentiment outweigh the positives. A hold is recommended until these issues are resolved or the stock shows signs of recovery.
The technical indicators are bearish. The MACD is negatively expanding, the RSI is at 28.881 (neutral but close to oversold), and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level of 17.125, with resistance at 18.731. The overall trend suggests weakness.
The company reported a 20% YoY revenue growth and holds over $7 billion in cash. Financial performance in Q3 2025 showed strong growth in revenue (+17.81% YoY), net income (+35.71% YoY), and EPS (+25.00% YoY).
Coupang is facing a major political and reputational crisis due to a data breach scandal, which has led to a class action lawsuit and regulatory scrutiny. Hedge funds are selling the stock, with a 252.50% increase in selling activity last quarter. Analysts have mixed ratings, with some lowering price targets due to heightened risks. The options market shows bearish sentiment, and the stock has dropped significantly following the data breach news.
In Q3 2025, Coupang reported revenue of $9.27 billion (+17.81% YoY), net income of $95 million (+35.71% YoY), EPS of $0.05 (+25.00% YoY), and gross margin of 29.35% (+1.73% YoY). These figures indicate strong financial growth despite external challenges.
Analyst sentiment is mixed. Citi maintains a Buy rating but lowered its price target to $24 from $27. Deutsche Bank upgraded the stock to Buy with a $25 price target. Bernstein initiated coverage with an Underperform rating and a $17 price target, citing limited growth opportunities in the e-commerce and food delivery sectors. Morgan Stanley lowered its price target to $31 from $35, citing cybersecurity risks but maintained an Overweight rating.
