CPNG Should I Buy
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Coupang Inc is not a strong buy at the moment for a beginner investor with a long-term horizon. While there are positive developments such as the Nvidia partnership and signs of revenue recovery, the technical indicators are bearish, financial performance is weak, and hedge funds are selling. The lack of strong trading signals and mixed analyst sentiment further supports a hold recommendation.
The technical indicators show a bearish trend. The MACD histogram is negative and expanding, RSI is neutral at 37.908, and moving averages indicate a bearish alignment (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 18.274, with resistance at 19.657.
Coupang's partnership with Nvidia to create an AI factory is a positive development, aiming to optimize logistics and improve customer experience. Additionally, signs of revenue recovery following the data breach scandal are encouraging.
Hedge funds are selling, with a significant 252.50% increase in selling activity over the last quarter. Financial performance in Q4 2025 was weak, with net income and EPS showing significant declines. Regulatory risks from the data breach still linger, and analysts have lowered price targets.
In Q4 2025, revenue increased by 10.92% YoY to $8.835 billion. However, net income dropped by -116.67% YoY to -$26 million, EPS fell by -112.50% YoY to -$0.01, and gross margin declined to 28.79%, down -7.93% YoY.
Analyst sentiment is mixed. Recent ratings include price target reductions from Morgan Stanley, JPMorgan, Mizuho, and others, citing data breach impacts and regulatory risks. However, some analysts maintain an Overweight or Buy rating, citing long-term competitive advantages and recovery potential.
