What Happened?
Shares of online platform company Coupang (NYSE: CPNG) rose in the morning session despite Nomura drastically cutting its 2026 earnings per share forecast for the company amid mounting regulatory and legal pressures.
The investment firm slashed its EPS projection by 95% to just $0.03. This revision followed warnings of aggressive action from South Korea's Fair Trade Commission (FTC), which could include a fine of up to $900 million and a large-scale consumer compensation package. Compounding the company's troubles, a class-action lawsuit was filed against Coupang on behalf of investors. The complaint alleged the company made misleading statements and failed to disclose information about its cybersecurity, which it claimed was inadequate and led to a data breach.
After the initial pop the shares cooled down to $19.45, down 0.7% from previous close.
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What Is The Market Telling Us
Coupang’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 8.9% on the news that it experienced a technical breakout that sent the stock to a new 52-week high.
The e-commerce company's stock is seen by some technical investors as a notable candidate for a breakout. According to Mill Chart, Coupang has a strong Technical Rating of 7, indicating a solid uptrend, and a Setup Quality Rating of 8, which points to a high-quality consolidation pattern that could precede a significant price move. The stock reached a new 52-week high of $31.65, reflecting growing investor confidence. This momentum is supported by rising moving averages and a positive long-term trend. Recent analyst actions, including price target increases from Morgan Stanley and Macquarie, have also bolstered the positive sentiment surrounding the company's growth in its Product Commerce segment.
Coupang is down 16.8% since the beginning of the year, and at $19.45 per share, it is trading 42% below its 52-week high of $33.53 from September 2025. Investors who bought $1,000 worth of Coupang’s shares at the IPO in March 2021 would now be looking at an investment worth $394.82.
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