Coupang Shares Slide as Revenue Misses Expectations
2022.08.11 20:26
Coupang (CPNG) Shares Slide as Revenue Misses Expectations
By Sam Boughedda
Coupang (NYSE:CPNG) shares are down 2.8% on the back of its earnings release aftermarket Wednesday.
While earnings topped analyst expectations, revenue missed forecasts, with the company reporting a second-quarter loss per share of $0.04, $0.08 above the analyst estimate of $0.12, with revenue for the quarter coming in at $5 billion versus the consensus estimate of $5.31 billion.
“We increased our investment—to a record $500 million in Q2 alone—in exclusive discounts, free Rocket deliveries, and free Coupang Play video content for our WOW members. We exist to transform the lives of our customers, and WOW membership is the embodiment of that relentless customer focus,” said Bom Kim, founder and CEO of Coupang.
Coupang shares initially rose at the open, hitting a high of $21.38 per share, but they are now down on the day. In 2022, Coupang shares have declined by over 34%.
Looking ahead, the company expects to achieve a positive total company adjusted EBITDA for FY 2022 compared to the previous guidance of $(400) million in adjusted EBITDA for the full year.
Following the report, Deutsche bank downgraded the stock from Buy to Hold, cutting their price target on the stock to $18.50 from $15.
