The “Amazon of Korea” Got Crushed After IPO… Now It’s Quietly Building an Empire (And Undervalued)

I remember the first time I played pickleball. People had hyped it up so much… “It’s like tennis but easier!” “You’ll be obsessed!” “It’s the fastest growing sport in America!”… but when I actually stepped on the court, I was kinda… underwhelmed. My serve looked like I was swatting flies. My backhand resembled a toddler learning golf. And don’t even get me started on the whole “kitchen” rule situation. But after giving it a few more tries, I actually started to get it.

All this to say, sometimes you have to let the hype fade before you can actually appreciate something. That’s exactly what’s happening with Coupang. When Coupang  went public in 2021, it was billed as the “Amazon of South Korea.” Investors were practically throwing money at it, pushing the IPO price to $50 during one of the hottest stock market stretches in recent history. But within 18 months, shares had plummeted to $8. The narrative flipped almost overnight… from tech darling to cautionary tale. Investors moved on, assuming Coupang would be just another overhyped IPO that couldn’t hold up under public pressure.

But behind the scenes, Coupang wasn’t actually flailing. It was building. Quietly and methodically, the company doubled its revenue over the next four years. Last year, it posted $30.3 billion in sales… up 24% year-over-year, or 29% on a currency-neutral basis. That momentum carried into 2025, with Q1 revenue hitting $7.9 billion, up 11% (or 21% currency-neutral). The company has also steadily improved profitability, with adjusted EBITDA margins rising from 3.9% to 4.8% over the last five quarters. Management says they’re aiming to exceed 10% long term, and based on recent performance, that no longer seems like a stretch.

Coupang now owns roughly 25% of South Korea’s e-commerce market. That kind of market share is impressive anywhere… but in a country where 81% of people live in cities, Coupang has a logistical advantage most global e-commerce players can only dream of. The company offers dawn delivery, same-day drop-offs, next-day shipping, and instant refunds with app-triggered returns. Order by midnight, and your package is at your door before breakfast. And if you don’t want it… just leave it outside, tap your screen, and they’ll take it back… refund processed automatically. That kind of customer experience has helped Coupang earn the highest customer satisfaction score in South Korea, according to the National Customer Satisfaction Index.

Beyond traditional retail, Coupang is building a vertically integrated lifestyle ecosystem through its $6-a-month WOW membership (that’s the real name). It’s essentially Amazon Prime with a twist: it bundles in groceries, restaurant delivery, streaming, online payments, appliance installation, and even exclusive discounts. All of this is wrapped in a slick one-app experience. The convenience is sticky. The brand loyalty is growing. And the moat is widening.

Coupang is also growing abroad. The company is aggressively expanding into Taiwan, where early signs mirror South Korea’s initial growth curve. Sales in Taiwan jumped 23% quarter over quarter in Q4, and after launching the WOW program in Q1, Coupang increased its product catalog there sixfold. Taiwan’s population is about 23 million (less than half of South Korea’s), but if Coupang captures similar market share, it could add billions more in revenue.

Coupang also made a big move in luxury by acquiring Farfetch for $500 million in 2023. The platform, once a money-losing mess, is now reportedly breakeven and still pulling in over $4 billion in annual sales. That acquisition may prove brilliant in the long run, especially since South Korea leads the world in luxury spending per capita (random fact of the day). Add to that the 49 million monthly visitors from 190 countries Farfetch brings to the table, and you start to see how Coupang could go from regional giant to global contender.

Despite all this growth, Coupang still trades at about half of its original IPO price. As of this writing, shares are up around 25% over the past 12 months, but that barely scratches the surface of what could be ahead. The company recently authorized a $1 billion share buyback, which is a huge signal to investors: Coupang thinks its own stock is undervalued. It also has over $6 billion in cash and equivalents, giving it the firepower to keep investing in growth while rewarding shareholders.

At first glance, its 48x free cash flow multiple might seem steep. But dig a little deeper and you’ll see that Coupang is funneling nearly half of its operating cash into capital expenditures to expand logistics and build infrastructure. In other words, this is a high-growth business reinvesting for scale, not a bunch of idiots with no plan. If EBITDA margins really do climb above 10% and growth in Taiwan and Farfetch continue on pace, Coupang’s valuation could quickly start to look cheap in hindsight.

At the time this article was published Stocks.News holds positions in Amazon as mentioned in article.