Baba Stock – Will Coupang (CPNG) Stock Go Up and Is It a Buy Now?
Coupang’s IPO was a huge success. The stock rose sharply on its debut despite the company pricing the offering above the marketed range. However, the success turned out to be a double-edged sword. It paved the way for an early release of insider shares. As insider lockups came off, new shares flooded the market, which diluted the price.
Also, CPNG stock’s decline can be linked to tepid enthusiasm on Wall Street. Six analysts have initiated coverage on Coupang stock. Among the analysts, four recommend a hold and two recommend a buy.
Coupang’s mixed first-quarter results have also weighed on the stock. The company released the earnings on May 12. It reported revenue of $4.2 billion, which increased 74 percent YoY and slightly beat the consensus estimate. The loss widened to $295 million from $105 million a year ago.