Coupang Q4 2023 Earnings: Healthy Top-Line Growth, Intensifying Competition, A Big Question On The Recent Acquisition
Summary
- Coupang reported solid earnings results. Product commerce's profitability improved and developing offerings demonstrated impressive growth.
- However, management anticipates a larger loss from the developing offerings segment due to increased investments in Taiwan.
- Chinese e-commerce players have intensified the competition. In our view, Coupang will likely maintain its market leadership thanks to its superior logistics capabilities.
- We question the rationale behind the acquisition of Farfetch. It remains to be seen how Coupang will transform it into a profitable business amid heightened competition.
- We believe the growth potential has been fully priced in. A successful execution of turning Farfetch profitable and international expansions could change the equations, despite several key risks mentioned below.
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