The share price of Coupang, the largest online shopping company in Korea, is not using its strength. They are locked up in a box ticket of around $40 a share for nearly a month after listing on the New York Stock Exchange. Among the’Seohak ants’ (individual investors investing in overseas stocks) holding Coupang stocks, there are concerns that they were bitten by the highs.
A billboard advertisement is being held on Times Square in Manhattan, New York, to commemorate Coupang’s listing on the New York Stock Exchange. News 1
7.5% lower than the closing price on the listing date
On the 8th (local time) on the New York Stock Exchange (NYSE), Coupang shares closed at $45.58, down 0.55% from the previous day. Although the offering price was 30% higher than the public offering price ($35), it fell 7.5% from the 11th of last month ($49.25), the first day of listing. Compared to the high point set on the 15th of last month ($50.45), it is down 9.7%. The market capitalization evaporated more than 12 trillion won from $8.85 billion (about 10.04 trillion won) on the 11th of last month to $78.176 million (88 trillion won) on the 8th. Still, it is still the second largest among domestic companies after Samsung Electronics (499 trillion won) and SK Hynix (102 trillion won).
Concerns that the company’s value was overvalued was a negative factor in the sluggish share price. A representative indicator of the value of growth stocks is the share price-to-sales ratio (PSR). Calculated by dividing the stock price by the sales per share. The lower the PSR, the more undervalued. Coupang’s PSR is 3.6 to 4 times higher than that of Amazon (3.3 times). Seo Jeong-yeon, a researcher at Shinyoung Securities, explained, “The fact that even E-Mart stocks, which have creased in the Korean distribution era, have never reached a quadruple PSR is a burden in terms of Coupang valuation (share price compared to earnings).” Park Jong-dae, a researcher at Hana Financial Investment, said, “The stock price of stocks with high valuation shakes whenever negative news comes out.”
Coupang’s stock price is sluggish. Graphic = Reporter Jaemin Shin [email protected]
From the controversy over high evaluation to the amount of protection Jesus
It also played a part in the release of the amount of protection savings from executives and employees, which had been locked out for a certain period of time. In principle, Coupang’s protective jesus period is 180 days, but there are exceptions. If the stock price exceeds the public offering price for 3 consecutive trading days after listing, employees can sell 34 million shares from the 18th of last month, 6 trading days after listing. It is 4.8% of the stock in circulation. Pre-investors were also allowed to sell part of their shares if the stock price exceeds 33% of the public offering price ($46.55 per share) 12 days after listing. An industry insider said, “Because the stock price at the end of last month was close to $50 per share, there is a possibility that the big players started to realize profits.”
Seohak ants are keen on the flow of stock prices. According to the Korea Securities Depository, domestic investors have bought Coupang stocks for $91.28 million (102.5 billion won) in net worth since the 11th of last month. During this period, it is the third-largest overseas stock that domestic investors bought after Tesla ($163.64 million) and Apple ($123.31 million). Internet stock communities have posted articles saying, “I thought the stock would play and entered the listing day and was forced to fight (long-term investment),” and “I am anxious that the stock price will fall sharply.”
On the 15th of last month, in front of Coupang headquarters in Shincheon-dong, Songpa-gu, Seoul, Rider Union, a labor union of delivery drivers, held a vehicle display demonstration to condemn Coupang’s food delivery platform, Coupang Itz, for a reduction in delivery fees. yunhap news
Goldman “going $62″… JPMorgan “$48 is right”
Wall Street’s share price outlook is mixed. Goldman Sachs set a target price of $62 at Coupang and gave a’buy’ opinion. It means that there is 36% upside potential compared to the current stock price. It was positive that Coupang’s e-commerce market share will grow from 14% today to 28% in 2023 and 47% in 2030. On the other hand, JPMorgan offered a neutral investment opinion and a target price of $48 per share. They cited social controversy, such as the treatment of courier drivers, as a burden. The target price suggested by Deutsche Bank was only 46 dollars.
Reporter Hwang Eui-young [email protected]
