Coupang Shares Fall After Mixed Q1 Results: Here's Why

Zinger Key Points
  • Coupang reports quarterly earnings of 5 cents per share which missed the analyst consensus estimate of 6 cents per share .
  • Quarterly sales clock in at $7.11 billion which beat the analyst consensus estimate of $6.91 billion.

Coupang, Inc. CPNG shares are trading lower Wednesday after the company posted mixed first-quarter financial results. Here's a look at the key figures from the report. 

The Details:

Coupang reported quarterly earnings of 5 cents per share which missed the analyst consensus estimate of 6 cents per share, unchanged from the same period last year. 

Quarterly sales clocked in at $7.11 billion which beat the analyst consensus estimate of $6.91 billion and represents a 22.66% increase over sales of $5.8 billion from the same period last year.

The company said Product Commerce segment net revenues were $6.5 billion, up 15% year-over-year, and Product Commerce active customers reached 21.5 million, growing 16% year-over-year.

"Our results are a reflection of our commitment to customer experience and operational excellence,” said Gaurav Anand, CFO of Coupang. “We continue to be focused on wowing our customers as we remain just single digit share of a massive and highly fragmented $560 billion commerce opportunity in Korea, and an even smaller share in Taiwan.”

Mizuho analyst James Lee maintained a Neutral rating on Coupang and raised the price target from $20 to $23 following the print. 

Related News: Reddit Shares Soar On First Post-IPO Q1 Results, Strong Q2 Guidance

Should I Sell My CPNG Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Coupang have gained 30.34% year to date. This compares to the average annual return of -13.91%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Coupang stock currently has an RSI of 72.53, indicating overbought conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

CPNG Price Action: According to Benzinga Pro, Coupang shares are down 8.82% at $21.57 at the time of publication Wednesday.

Image: Courtesy of Coupang, Inc.

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