What to expect from Coupang’s (CPNG) Q3 earnings

Coupang (NYSE:CPNG), the online retail platform, is set to announce its third-quarter earnings this Tuesday after the market closes. Investors are keenly awaiting the results to assess the company's performance.

In the previous quarter, Coupang fell short of analysts' revenue forecasts, reporting earnings of $8.86 billion, reflecting a modest year-on-year increase of 3.9%. Although the revenue figures did not meet expectations, the company surpassed projections for EBITDA, showing a mixed performance overall. The number of active buyers also rose to 24.7 million, which is a 3.3% increase compared to the same period last year.

As the company approaches its earnings release, questions remain about whether Coupang is a worthwhile investment. Investors can find a detailed analysis of the situation available for free to active members of the Edge platform.

For the upcoming quarter, analysts forecast a revenue growth of 5.1% year-on-year for Coupang, a significant slowdown from the 17.8% growth experienced during the same quarter last year. Over the past month, analysts have largely maintained their revenue estimates, indicating that they expect the company to remain stable as it heads into the earnings announcement. It is worth noting that Coupang has struggled to meet Wall Street's revenue expectations multiple times over the past two years.

Looking at the performance of competitors within the consumer internet space, several companies have already released their Q3 earnings, providing some context for what Coupang might report. For instance, Carvana achieved an impressive year-on-year revenue growth of 42.4%, exceeding analysts' expectations by 4.9%. Meanwhile, Amazon reported a revenue increase of 12.1%, aligning with consensus estimates. Following the results, Carvana's stock surged by 15.1%, while Amazon's shares dipped by 1.8%.

The consumer internet sector has been experiencing a positive trend, with average stock prices rising by 2.1% over the past month. During the same period, Coupang's stock increased by 1.1%. Currently, analysts have set an average price target of $23.34 for Coupang, compared to its present trading price of $14.36.

In addition to Coupang's upcoming earnings, there is a notable mention of a lesser-known AI application stock that some investors believe could be a hidden gem. While the market is focused on prominent AI chip stocks that carry high valuations, this particular company is reportedly leveraging AI to process a trillion consumer signals each month and trades at a fraction of the price. Analysts suggest that this price discrepancy may not last long as institutional investors are likely to recognize the company's potential. A free report detailing this opportunity is available for those interested.