Coupang(CPNG): An undervalued diamond in the rough
Read https://researchragnarok.substack.com/about for disclaimer on buy-sell posts. This is not investment advice. Do your own due diligence before any decisions. We are not responsible for any losses
This is going to be a very short and rough writeup on why I’m BULLISH on the shares of CPNG. The reason it is very short is because I am building off of the amazing work done by other traders on Twitter, such as Logical Thesis, etc. All in all the thesis boils down to the following investment theses:
We see a lot of similarities between AMZN/BABA a few years ago, and CPNG now. But, Coupang’s narrative is far less optimistic than that. We provide the reasons why the market is underestimating the likeness between CPNG and the other big E-Commerce stocks.
One of the reasons for a slight decline in Coupang’s earnings is due to ‘higher content costs’ associated with its ‘Coupang Play’ app. But Coupang Play has very recently exhibited explosive growth in installations and usage, and we think that Coupang Play is on track to earn higher revenues, enabling them to fully cover ‘content costs’.
The stock seems to have found a stable support right about current levels, and seems like it is poised for a breakout.
Shares have been beaten down so much that they are a bargain at this point
