Key Takeaways
Coupang Inc. (NYSE: CPNG) shares fell as much as 14 percent after the South Korean e-commerce company reported first-quarter revenue of $8.5 billion, missing analyst expectations and swinging to a net loss.
Management noted that despite the breach's impact, 80 percent of the WOW memberships lost in a 2025 data breach had returned by April, suggesting a successful recovery from the incident.
The sharp swing into a loss stemmed from a $1.2 billion customer voucher program to remediate the 2025 data breach. The stock closed Wednesday at $17.91 on trading volume 238 percent above its three-month average.
While revenue grew 7.5 percent from the $7.91 billion reported a year ago, the miss against consensus estimates and the net loss spooked investors. The loss per share of $0.15, while better than the expected $0.59 loss, marked a significant downturn from the $0.06 profit per share in the same quarter last year.
A bright spot in the report was the company’s Developing Offerings segment, which includes its expansion in Taiwan, the Eats food delivery service, and Japanese operations. The segment grew sales by 25 percent, showing continued momentum in new markets.
The selloff in Coupang contrasted with gains for other e-commerce peers on Wednesday, with Alibaba Group (BABA) closing up 6.94 percent and JD.com (JD) rising 3.40 percent as investors weighed the competitive landscape.
The results place the stock at just 0.96 times sales, a metric that may attract value investors if the company can continue its recovery. Investors will watch for Q2 results, where consensus estimates call for $0.03 in EPS on $9.05 billion in revenue, to see if the data breach costs are contained.
This article is for informational purposes only and does not constitute investment advice.
