Latest news with #RocketWow
Globe and Mail
6 days ago
- Business
- Globe and Mail
This Soaring Hypergrowth Technology Stock Still Has Plenty of Room to Run
Coupang (NYSE: CPNG) stock, which had been trading above $25 in mid-February, sank to less than $20 in early April amid the market's negative reaction to President Donald Trump's tariffs. However, as of this writing, it sits at $28.45, a level it hadn't seen since the end of 2021. The South Korea-based e-commerce and technology company has kept growing its market share in its home market, and it's beginning to successfully expand into another country. Yet even with Coupang's market cap now surpassing $51 billion, there is still plenty of room for its stock to run in 2025 and through the rest of the decade. The South Korean Amazon Shoppers in South Korea are flocking to Coupang. It has more than 20 million accounts in the country, which has a population of 52 million, and many of those accounts represent households with multiple people. Why is the platform seeing so much success? Because Coupang has built up an incredible e-commerce shipping system. It offers same-day delivery, as well as overnight delivery by 7 a.m. for orders placed by midnight the day before. Returns can be handled simply by leaving an item in a Coupang reusable package outside your door. The free delivery for groceries and food delivery services it offers are much better than even Amazon manages. All this is included for a cheap monthly subscription to its Rocket Wow program, which also includes a streaming video service. Through scale, automation, and brute-force efficiency, Coupang has been able to offer this incredible shopping experience while still generating positive cash flow. On $31 billion in revenue over the past 12 months, the company has generated $1 billion in free cash flow. This was with revenue growing by 21% year-over-year on a currency-neutral basis and gross profit growing 31% year-over-year last quarter. South Korea's annual retail spending amounts to hundreds of billions of dollars, so the company has a ton of room to keep expanding in its home market. Adding another country with high growth potential Management is not stopping at South Korea. It recently launched the Coupang e-commerce model in Taiwan with great success. The business segment that houses the Taiwan unit grew its revenue by 78% year-over-year last quarter to $1 billion on a currency-neutral basis. While that segment is unprofitable today, Taiwan -- a rich and densely populated nation of around 23 million people -- is a similar market in many regards to South Korea -- and customers there will likely quickly come to appreciate the Coupang model. Taiwan and the rest of what Coupang calls its "developing offerings" segment lost $168 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) last quarter, which was a headwind to its consolidated profits. However, I believe these expansions will drive a long-term advantage for Coupang. Management can funnel some of the profits it reaps in South Korean e-commerce to build up scale in Taiwan, which should eventually have similar economic characteristics to its home market. This expansion adds tens of billions of dollars to Coupang's addressable market, and Taiwan is only the second country it has launched its e-commerce platform in so far. CPNG Revenue (TTM) data by YCharts. Why Coupang stock still has room to run I believe the party is just getting started for Coupang stock. Its South Korean e-commerce sales should keep rising steadily in the years to come, while Taiwan will deliver explosive growth. Adding to the appeal for investors is that the Korean won has recently been appreciating versus the U.S. dollar, which will make Coupang's revenue and profits more impactful for American investors. The company also got a bargain deal when it acquired the Farfetch luxury shopping platform out of bankruptcy. Its offerings should be well-suited to the South Korean market, which spends relatively heavily on fashion and luxury. Add everything together and I think Coupang is well on its way to $50 billion in revenue and eventually $100 billion in annual sales by the end of the decade. Management is guiding for its profit margin to reach around 10% at scale, which would equate to $10 billion in annual earnings on $100 billion in revenue. In all likelihood, Coupang's market cap will approach $200 billion or higher if the company generates $10 billion in annual income. That would be a price-to-earnings ratio (P/E) of around 20 -- not a demanding earnings multiple for investors to expect. Today, its market cap is barely over $50 billion, so this calculation points to the stock gaining 300% or more over the next five years. In that light, the stock looks like a buy for long-term investors even after its bump so far this spring. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $360,955!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,958!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $638,985!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon and Coupang. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.
Yahoo
25-04-2025
- Business
- Yahoo
2 Magnificent Stocks Near 52-Week Lows
A stock trading at a 52-week low is simply when the stock price is at its lowest point of the past 12 months. While this indicator does not guarantee that a stock is set to rebound and do well for shareholders, it can pay to look at a basket of 52-week low stocks and see if there are any high-quality businesses getting thrown out with the bath water. You might find some cheap stocks to buy for your portfolio. As of this writing on April 23, few stocks are trading at their 52-week lows due to the massive broad market bounce we've seen in the last two weeks as investors try to navigate the tariff-based economic uncertainty. But there are a few strong growth stocks near their 52-week lows that look promising for investors who plan to buy and hold for many years. Here's why Coupang (NYSE: CPNG) and Airbnb (NASDAQ: ABNB) are two magnificent stocks to buy that fit this criterion. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » E-commerce has been a massive tailwind for innovative businesses, such as Amazon, that are able to take advantage of this shift in consumer spending. Coupang is an Amazon clone taking over the South Korean market. In fact, one might argue that Coupang has a better e-commerce value proposition than Amazon. Subscribers to Coupang's Rocket Wow service get free same-day and next-day delivery when ordering by midnight the night before, discounts on food delivery, fresh groceries delivered in hours, and streaming video options. The service is so good, Coupang representatives will even change your tires and install household appliances for free, as long as the products are ordered on the Coupang marketplace, of course. Most households in South Korea now use Coupang. It generates $30 billion in annual revenue and $1 billion in free cash flow, even as it expands into new countries such as Taiwan and reinvests heavily to improve its offering with add-on services such as the luxury marketplace Farfetch it acquired on the cheap. Gross profit increased 29% year over year last quarter, excluding changes in foreign currency conversions and inorganic revenue from acquisitions, an impressive growth rate for such a large company. At still a small percentage of overall retail spending in South Korea, I believe there is plenty of room for Coupang to keep growing quickly, especially when you include the expansion into Taiwan. At today's price of around $22.50, Coupang is only slightly above its 52-week low of $19.76 hit earlier this year. At a market cap of just $41 billion and a long runway to grow its $30 billion in annual revenues, Coupang stock looks like a magnificent steal at today's prices. Airbnb is a well-known brand around the world, with hundreds of millions of people trying its home-sharing marketplace as an affordable or unique way to travel. Over the years, it has become an increasingly important piece of the global travel pie. Last year, $81.8 billion was spent on the Airbnb marketplace, up 12% year over year. Growth should continue from this original concept for years, even in Airbnb's more mature markets like North America and Western Europe. The concept is still only a small sliver of the gigantic global travel market. However, to supercharge growth in the years to come, Airbnb is deliberately expanding its marketplace, both geographically and with the products offered to customers. Management is now custom-tailoring the Airbnb marketplace to unique travel markets such as Japan and Brazil, which is leading to fast growth in these regions. Latin America and Asia Pacific both saw 20%+ growth in nights and experiences booked in Q4 of last year, which is faster than overall Airbnb growth. On top of this global expansion, Airbnb has been prepping for years to add on new services to its marketplace. These will be new products for both guests and hosts on the Airbnb platform, and could possibly include travel packages, cleaning services, and other add-ons to improve the value proposition for both sides of the marketplace. These growth prospects make Airbnb a great stock to buy at its current price of $118, not far off its 52-week low of $105.69. You can buy Airbnb stock at a reasonable price and hold it in your portfolio for the long term. Before you buy stock in Airbnb, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Airbnb wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $652,319!* Now, it's worth noting Stock Advisor's total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon and Coupang. The Motley Fool has positions in and recommends Airbnb and Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy. 2 Magnificent Stocks Near 52-Week Lows was originally published by The Motley Fool
Yahoo
25-04-2025
- Business
- Yahoo
2 Magnificent Stocks Near 52-Week Lows
A stock trading at a 52-week low is simply when the stock price is at its lowest point of the past 12 months. While this indicator does not guarantee that a stock is set to rebound and do well for shareholders, it can pay to look at a basket of 52-week low stocks and see if there are any high-quality businesses getting thrown out with the bath water. You might find some cheap stocks to buy for your portfolio. As of this writing on April 23, few stocks are trading at their 52-week lows due to the massive broad market bounce we've seen in the last two weeks as investors try to navigate the tariff-based economic uncertainty. But there are a few strong growth stocks near their 52-week lows that look promising for investors who plan to buy and hold for many years. Here's why Coupang (NYSE: CPNG) and Airbnb (NASDAQ: ABNB) are two magnificent stocks to buy that fit this criterion. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » E-commerce has been a massive tailwind for innovative businesses, such as Amazon, that are able to take advantage of this shift in consumer spending. Coupang is an Amazon clone taking over the South Korean market. In fact, one might argue that Coupang has a better e-commerce value proposition than Amazon. Subscribers to Coupang's Rocket Wow service get free same-day and next-day delivery when ordering by midnight the night before, discounts on food delivery, fresh groceries delivered in hours, and streaming video options. The service is so good, Coupang representatives will even change your tires and install household appliances for free, as long as the products are ordered on the Coupang marketplace, of course. Most households in South Korea now use Coupang. It generates $30 billion in annual revenue and $1 billion in free cash flow, even as it expands into new countries such as Taiwan and reinvests heavily to improve its offering with add-on services such as the luxury marketplace Farfetch it acquired on the cheap. Gross profit increased 29% year over year last quarter, excluding changes in foreign currency conversions and inorganic revenue from acquisitions, an impressive growth rate for such a large company. At still a small percentage of overall retail spending in South Korea, I believe there is plenty of room for Coupang to keep growing quickly, especially when you include the expansion into Taiwan. At today's price of around $22.50, Coupang is only slightly above its 52-week low of $19.76 hit earlier this year. At a market cap of just $41 billion and a long runway to grow its $30 billion in annual revenues, Coupang stock looks like a magnificent steal at today's prices. Airbnb is a well-known brand around the world, with hundreds of millions of people trying its home-sharing marketplace as an affordable or unique way to travel. Over the years, it has become an increasingly important piece of the global travel pie. Last year, $81.8 billion was spent on the Airbnb marketplace, up 12% year over year. Growth should continue from this original concept for years, even in Airbnb's more mature markets like North America and Western Europe. The concept is still only a small sliver of the gigantic global travel market. However, to supercharge growth in the years to come, Airbnb is deliberately expanding its marketplace, both geographically and with the products offered to customers. Management is now custom-tailoring the Airbnb marketplace to unique travel markets such as Japan and Brazil, which is leading to fast growth in these regions. Latin America and Asia Pacific both saw 20%+ growth in nights and experiences booked in Q4 of last year, which is faster than overall Airbnb growth. On top of this global expansion, Airbnb has been prepping for years to add on new services to its marketplace. These will be new products for both guests and hosts on the Airbnb platform, and could possibly include travel packages, cleaning services, and other add-ons to improve the value proposition for both sides of the marketplace. These growth prospects make Airbnb a great stock to buy at its current price of $118, not far off its 52-week low of $105.69. You can buy Airbnb stock at a reasonable price and hold it in your portfolio for the long term. Before you buy stock in Airbnb, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Airbnb wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $652,319!* Now, it's worth noting Stock Advisor's total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon and Coupang. The Motley Fool has positions in and recommends Airbnb and Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy. 2 Magnificent Stocks Near 52-Week Lows was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
2 Top Stocks That Could Double in 2025
There's no question the bull market is alive and well. The S&P 500 jumped more than 50% over the two-year period of 2023-24, the first time it's done that since the dot-com era, and stocks are off to a hot start in 2025 as well. Through Jan. 22, the broad-market index is up 3%, and it just hit another all-time high. While pretty much any investor should be happy with the kind of returns the S&P 500 has delivered over the last two years, there are opportunities for more growth. Keep reading to see two stocks that look like good candidates to double this year. Coupang (NYSE: CPNG) may not be a household name in the U.S., but it is in South Korea, where it's the leading e-commerce platform. In fact, Coupang is following a similar playbook to Amazon, going from a direct online seller and then layering on more profitable, complementary businesses like a third-party marketplace, food delivery, and video streaming. It's also launched a similar service to Amazon Prime called Rocket Wow, helping to lock in customers. Thus far, Coupang has delivered solid growth, but it's yet to earn much credit from the market. That could change soon, though. First, the company is delivering solid growth on the top and bottom lines. Revenue in the third quarter was up 27%, or 32% on a currency-neutral basis, to $7.9 billion, and gross margin improved by 350 basis points to 28.8% thanks to improvements in both its core e-commerce business and newer offerings. Management touted increased efficiencies, greater utilization of technology and automation, supply chain improvements, and the scaling of its higher-margin businesses. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the quarter rose 44% to $343 million. Coupang also trades at a reasonable valuation at a price-to-sales ratio of 1.4, and the South Korean market is a good fit for its business, as its high density and fast internet speed make delivery easy and help services like video streaming. If it maintains its strong revenue growth and its margins continue to expand, the stock will be rewarded by investors. It could see a point of inflection in 2025. Another candidate for a doubling this year is Upstart Holdings (NASDAQ: UPST), the artificial intelligence (AI)-based lender that soared during the pandemic but is still down sharply. However, Upstart has gained traction since bottoming out, and the stock is up significantly since then, stabilizing even as interest rates have remained elevated and loan demand has been weak. That could start to change this year. First, the Federal Reserve is still forecasting two rate cuts, and Treasury yields have been elevated since Trump was elected due to investor nervousness about policies that could be inflationary, like tariffs and mass deportation. If inflation continues to come down, interest rates are likely to fall, benefiting Upstart. Upstart has also made internal improvements that set the company up for a new round of growth, as it's secured funding for its loans, which are typically funded through partners; has strengthened its balance sheet; and has streamlined its cost basis after a series of layoffs. The lending platform showed some signs of recovery in its third-quarter earnings report, with revenue up 20% to $162 million. Its volume of loans originated rose 30% year over year to 188,149, or $1.6 billion, and conversion improved dramatically, up from 9.5% to 16.3%. The company credited a new model, Model 18, with improving its conversion rate by making its forecasts more accurate, a key step to driving revenue growth. Upstart also sees continued revenue growth in the fourth quarter, and it could accelerate in 2025 and turn the company profitable, especially if interest rates come down. Upstart is a volatile stock, but it has the components to soar this year as it builds on the improvements in its model and benefits from an improving macro environment. Before you buy stock in Coupang, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coupang wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,051!* Now, it's worth noting Stock Advisor's total average return is 937% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list. Learn more » *Stock Advisor returns as of January 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Amazon and Upstart. The Motley Fool has positions in and recommends Amazon and Upstart. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy. 2 Top Stocks That Could Double in 2025 was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
26-01-2025
- Business
- Globe and Mail
2 Top Stocks That Could Double in 2025
There's no question the bull market is alive and well. The S&P 500 jumped more than 50% over the two-year period of 2023-24, the first time it's done that since the dot-com era, and stocks are off to a hot start in 2025 as well. Through Jan. 22, the broad-market index is up 3%, and it just hit another all-time high. While pretty much any investor should be happy with the kind of returns the S&P 500 has delivered over the last two years, there are opportunities for more growth. Keep reading to see two stocks that look like good candidates to double this year. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks » 1. Coupang Coupang (NYSE: CPNG) may not be a household name in the U.S., but it is in South Korea, where it's the leading e-commerce platform. In fact, Coupang is following a similar playbook to Amazon, going from a direct online seller and then layering on more profitable, complementary businesses like a third-party marketplace, food delivery, and video streaming. It's also launched a similar service to Amazon Prime called Rocket Wow, helping to lock in customers. Thus far, Coupang has delivered solid growth, but it's yet to earn much credit from the market. That could change soon, though. First, the company is delivering solid growth on the top and bottom lines. Revenue in the third quarter was up 27%, or 32% on a currency-neutral basis, to $7.9 billion, and gross margin improved by 350 basis points to 28.8% thanks to improvements in both its core e-commerce business and newer offerings. Management touted increased efficiencies, greater utilization of technology and automation, supply chain improvements, and the scaling of its higher-margin businesses. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the quarter rose 44% to $343 million. Coupang also trades at a reasonable valuation at a price-to-sales ratio of 1.4, and the South Korean market is a good fit for its business, as its high density and fast internet speed make delivery easy and help services like video streaming. If it maintains its strong revenue growth and its margins continue to expand, the stock will be rewarded by investors. It could see a point of inflection in 2025. 2. Upstart Another candidate for a doubling this year is Upstart Holdings (NASDAQ: UPST), the artificial intelligence (AI)-based lender that soared during the pandemic but is still down sharply. However, Upstart has gained traction since bottoming out, and the stock is up significantly since then, stabilizing even as interest rates have remained elevated and loan demand has been weak. That could start to change this year. First, the Federal Reserve is still forecasting two rate cuts, and Treasury yields have been elevated since Trump was elected due to investor nervousness about policies that could be inflationary, like tariffs and mass deportation. If inflation continues to come down, interest rates are likely to fall, benefiting Upstart. Upstart has also made internal improvements that set the company up for a new round of growth, as it's secured funding for its loans, which are typically funded through partners; has strengthened its balance sheet; and has streamlined its cost basis after a series of layoffs. The lending platform showed some signs of recovery in its third-quarter earnings report, with revenue up 20% to $162 million. Its volume of loans originated rose 30% year over year to 188,149, or $1.6 billion, and conversion improved dramatically, up from 9.5% to 16.3%. The company credited a new model, Model 18, with improving its conversion rate by making its forecasts more accurate, a key step to driving revenue growth. Upstart also sees continued revenue growth in the fourth quarter, and it could accelerate in 2025 and turn the company profitable, especially if interest rates come down. Upstart is a volatile stock, but it has the components to soar this year as it builds on the improvements in its model and benefits from an improving macro environment. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $369,816!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,191!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $527,206!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. Learn more » *Stock Advisor returns as of January 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Amazon and Upstart. The Motley Fool has positions in and recommends Amazon and Upstart. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.
