Coupang's Shares Climb After Profit Surges in Competitive Market
Coupang Inc.'s shares jumped after the largest e-commerce company focused on South Korea handily beat quarterly profit estimates, helped by a one-time insurance gain as it faces off against Chinese rivals. The online retailer earned an operating income of $312 million, almost double the estimate of $168 million after booking an insurance gain in connection with a fire that damaged one of its fulfillment centers in 2021. Net revenue rose 21% in the December quarter, slightly shy of the average analyst projection.
- As Coupang expands into new markets and ventures, it will need to balance growth with the increasing competition from established players, where margins may be squeezed by rising logistics costs.
- What role will Coupang's strategic acquisitions, such as Farfetch, play in helping the company weather the storm of intensifying market competition?