Coupang Inc

Coupang, Inc., Korea's largest e-commerce platform, detracted from performance with shares down 7.7%. The stock came under pressure following first-quarter results, where in-line revenue was overshadowed by softer second-quarter guidance as capacity and supply chain investments made ahead of Coupang’s 2025 data breach weighed on margins while customer volumes recovered. Despite these headwinds, our conviction remains intact. We view the margin pressure as temporary, and the fine removes a key overhang and reinforces our belief that the breach does not reflect a structural loss of market share. By the end of April, Coupang recovered roughly 80% of the post-breach decline in WOW Membership (its paid subscription program), with returning members resuming prior spending levels. We continue to view Coupang as a competitively advantaged e-commerce business gaining share in its core market while scaling Taiwan operations.

Coupang, along with other quality internet platforms, has seen its stock price decline significantly, primarily due to multiple compression rather than fundamental impairment. The market's current valuation multiples are down approximately 40%, creating a lower bar for these companies to outperform. Despite the market's focus on AI, Coupang and similar companies are well-positioned to leverage AI to deliver value to consumers. With many of these businesses trading at P/E ratios typically reserved for slow-growing companies, the potential for long-term growth remains strong, making this an attractive entry point for investors.

Coupang, Inc. was mentioned as a top detractor from performance for the quarter, with shares declining 0.69%. However, there was no explicit directional argument made regarding its future performance or investment potential.

Coupang is the leading e-commerce company in South Korea, often compared to Amazon for its wide product selection, strong customer service, and best-in-class logistics network. Founded in 2010, Coupang has built its reputation around its 'Rocket WOW' system, which offers same-day or next-day shipping on millions of items. The company's deeply vertically integrated logistics model allows it to own and operate its fulfillment centers, manage inventory directly, and control last-mile delivery. This advantage positions Coupang well to capture market share and expand margins over the long term. Despite a recent share price decline due to a cyber breach, we view this as an opportunity to invest in a high-quality company at an attractive valuation.

Coupang, Inc. was mentioned as one of the top holdings contributing to the Fund's performance, alongside other companies. The letter notes that Coupang, along with MercadoLibre, contributed significantly to the Consumer Discretionary sector's performance, which added 405bps to relative results. However, there is no explicit bullish or bearish argument made regarding Coupang's future prospects or valuation.