Why Has Coupang (CPNG) Paused Buybacks After Returning to Profitability?

• Coupang, Inc. recently reported its second quarter 2025 results, showing revenue of US$8.52 billion and net income of US$32 million following a loss last year, alongside positive six-month performance.
• A unique aspect is that despite Coupang's strong earnings turnaround, the company has not repurchased any shares under its buyback program during this period.
• We'll examine how Coupang's return to profitability amid a slowing earnings growth outlook may affect its longer-term investment case.

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Coupang Investment Narrative Recap

For investors considering Coupang, the big picture centers on believing in the company’s ability to drive margin expansion and sustained earnings growth through ongoing investments in technology and operational efficiency, despite the fact that earnings growth is expected to slow going forward. The recent swing to profitability is encouraging, but it does not materially change the near-term catalyst of scaling Coupang’s new offerings (particularly in Taiwan), nor does it reduce the biggest risk: ongoing losses and high expenses in these developing segments that could delay broader profitability. Among recent announcements, Coupang’s update that no shares have been repurchased under its sizable US$1 billion buyback program stands out. While the buyback’s inactivity did not detract from the current quarter’s positive earnings, it does signal that management is possibly maintaining a cautious approach to capital allocation, keeping flexibility as it continues international expansion and invests heavily in future growth levers. On the other hand, investors should keep a close watch on how persistent investments and scaling inefficiencies in new markets could...

Read the full narrative on Coupang (it's free!)

Coupang's narrative projects $45.9 billion in revenue and $2.0 billion in earnings by 2028. This requires 12.5% yearly revenue growth and a $1.635 billion earnings increase from current earnings of $365.0 million.

Uncover how Coupang's forecasts yield a $32.99 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Six individual fair value estimates from the Simply Wall St Community show a broad range, from US$27.25 up to US$46.78 per share. However, ongoing high expenses and international expansion risks may challenge Coupang’s ability to meet bullish profit growth targets, so consider multiple viewpoints when assessing opportunities.

Explore 6 other fair value estimates on Coupang - why the stock might be worth just $27.25!

Build Your Own Coupang Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Coupang research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Coupang research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Coupang's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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