CPNG Should I Buy
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Coupang Inc (CPNG) is not a strong buy for a beginner, long-term investor at this time. While the company has long-term competitive advantages, current challenges such as regulatory scrutiny, a recent data breach, and weak financial performance make it prudent to wait for stabilization before investing.
The MACD is positive and expanding, indicating bullish momentum. RSI is neutral at 58.576, and moving averages are converging, showing no clear trend. The stock is trading near its resistance level of 18.77, with key support at 17.219.
Revenue increased by 11% YoY in Q4 2025, showcasing growth potential. Analysts like UBS and Deutsche Bank maintain a Buy rating, citing long-term competitive advantages in scale and fulfillment.
Recent data breach affecting 33 million users has led to regulatory scrutiny and potential legal repercussions. Q4 financials showed a net loss of $26 million, declining adjusted EBITDA, and missed analyst expectations. Hedge funds are selling, with a 252.50% increase in selling activity over the last quarter.
In Q4 2025, revenue grew by 10.92% YoY to $8.835 billion. However, net income dropped to -$26 million (-116.67% YoY), and EPS fell to -$0.01 (-112.50% YoY). Gross margin declined to 28.79% (-7.93% YoY), reflecting operational challenges.
Analysts have lowered price targets recently, with Barclays, UBS, and Citi revising targets to $23, $25, and $24 respectively. Bernstein initiated coverage with an Underperform rating and a $17 price target, citing limited growth opportunities in e-commerce and food delivery. Despite this, some analysts like Deutsche Bank maintain a Buy rating with a $25 target, citing long-term growth potential.
