Q2 Rundown: Coupang (NYSE:CPNG) Vs Other Online Retail Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how online retail stocks fared in Q2, starting with Coupang (NYSE:CPNG).
Online penetration surged during COVID before normalizing, consumer expectations around convenience, selection, fast delivery, and competitive pricing have remained permanently higher. Retailers have responded by investing in fulfillment networks, automation, omnichannel capabilities, and AI-powered personalization to serve customers more efficiently and improve the shopping experience.Today, ecommerce growth is driven less by first-time online adoption and more by increasing wallet share, higher purchase frequency, and the continued migration of traditionally offline categories online. As logistics networks and AI capabilities continue to improve, leading ecommerce platforms are well positioned to capture a growing share of consumer spending over the coming decade.
The 5 online retail stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 2.1% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q2: Coupang (NYSE:CPNG)
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the “Amazon of South Korea”.
Coupang reported revenues of $8.86 billion, up 3.9% year on year. This print fell short of analysts’ expectations by 2.2%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates.
Coupang delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 24.7 million active buyers, up 3.3% year on year. The market seems disappointed with the results as the stock is down 11.4% since reporting and currently trades at $14.87.
Is now the time to buy Coupang? Access our full analysis of the earnings results here, it’s free.
Best Q2: Revolve (NYSE:RVLV)
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NYSE:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.
Revolve reported revenues of $347.4 million, up 12.4% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and solid growth in its buyers.
