Lifted 34 million shares of protection Jesus
The possibility of selling large investors
Positive future growth potential
Coupang’s banner and Korean flag on the New York Stock Exchange (Photo = Yonhap News)
The stock price of Coupang is going downhill every day. The issue of the release of protection deposits by employees and the possibility of large investors selling their shares appears to be a burden on the stock price. The securities industry paid attention to the potential for future growth, even though Coupang was highly valued.
Coupang ended at $43.70 on the 25th (local time) on the New York Stock Exchange (NYSE), down 0.21% from the previous trading day. It is 12% lower than the closing price ($49.25) on the first day of listing. The market cap, which exceeded 100 trillion won, has also shrunk to 84 trillion won.
The issue of the cancellation of protection Jesus by employees of Coupang is the background to lowering the stock price. Coupang announced on the 18th that restrictions on early stock sale by some employees will be lifted. Employees own about 34 million shares, which is half of the total employee stock options (650.7 million shares).
The possibility of selling by large investors is also putting a burden on the stock price. At the time of listing, Coupang had a three-month protection period. However, after the 12th trading day of listing, if the stock price exceeds 33% ($46.55) of the public offering price, large investors can sell part of the stake.
Securities companies analyzed that the current share price was overvalued when compared to Coupang’s sales and other results. Some point out that the valuation (share price compared to earnings) is burdensome compared to competitors in the e-commerce sector.
Suspicion over future earnings is also a factor limiting the share price rise.
Researcher Kim said, “Coupang has a huge logistics infrastructure and technology compared to its competitors. If it maintains its position as a leading company in the e-commerce industry, it can expand into new business areas.”
However, there is a positive evaluation of Coupang’s future growth potential based on the expansion of its domestic market share.
Park Jong-dae, a researcher at Hana Financial Investment, said, “The business value of online distribution lies not in short-term profits, but in absolute market share.” Judged.
Young-hoon Joo, a researcher at Eugene Investment & Securities, emphasized, “Last year, Coupang’s share of the domestic e-commerce market is still only 13%. Conversely, it means that there is still room for growth”
Reporter Kim Tae-dong, Hankyung.com [email protected]
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