COUPANG stock could still have room to run after 60% rally, says Morgan Stanley

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Coupang ($NYSE:CPNG) stock has surged 60% in the past month, and Morgan Stanley believes there is still room for the stock to run. In a note to clients on Friday, the bank’s analysts suggested that a second quarter earnings release due in early August could be a pivotal point for the trajectory of the stock. They believe that upside to gross margins and narrowing losses for the Eats will be crucial to sustaining a rebound for shares. The team remained optimistic and maintained a “Buy” equivalent rating on shares ahead of the report. It is unclear how long the momentum will last for Coupang, but the company is expected to release strong earnings in the second quarter. This could be a pivotal point for the stock, and if gross margins and losses for the Eats continue to improve, the stock could continue to surge.

Market Reaction

On Friday, COUPANG stock opened at $18.8 and closed at $17.6.

 

VI Analysis

VI app’s analysis of COUPANG’s fundamentals reflects the company’s long term potential. According to VI Risk Rating, COUPANG is a medium risk investment in terms of financial and business aspects. The website presents the potential risks in the company’s business and financial areas.

Summary

The stock is up 60% since the start of the year, but it still has a ways to go to catch up to other e-commerce stocks. While the company is well-positioned to capitalize on the growth of online shopping in Korea, there are some risks to consider. The stock is trading at a high valuation, and there could be more competition from other e-commerce players in the future. The company is expected to report strong earnings growth in the coming years, and it has a solid track record of execution. investors should keep an eye on COUPANG stock. While there are some risks to consider, the company’s strong growth prospects make it a compelling investment.