(C) Reuters. Vipshop vs. Coupang: Which Asian E-commerce Stock is a Better Buy?
Rapid technological advancement and a change in consumer buying behavior have been major driving forces behind the Asian e-commerce industry’s exponential growth. But while some Asian e-commerce companies have the capacity to increase their market shares, Vipshop (NYSE:VIPS) and Coupang (CPNG) don’t appear to be able to maintain their current market shares, let alone increase them. So, let’s evaluate if either of these two stocks is a buy now. Vipshop Holdings Limited (VIPS) and Coupang, Inc. (CPNG) are prominent players in the growing e-commerce sector in Asia. China-based VIPS is an online discount retailer that operates through the Vip.com, Shan Shan Outlets, and Others segments. CPNG is an e-commerce business operator in South Korea that offers various products and services home goods, beauty products, groceries, and electronics categories, in addition to delivery services, among others.
The Asian e-commerce industry has experienced exponential growth amid the COVID-19 pandemic, bolstered by the increasing online shopping activity and advancements in delivery systems. The shift in consumers’ shopping behavior regarding online purchasing has helped major players in the Asian e-commerce market–including JD.com, Inc. (NASDAQ:JD), Pinduoduo Inc. (NASDAQ:PDD), and Alibaba Group Holding Ltd (NYSE:BABA)–to generate considerable revenues and profits over the past year. While VIPS and CPNG have also been beneficiaries of the industry’s exponential growth, they look relatively less appealing now given their weak financials. And we think the competitive landscape could negatively impact the market shares of these two companies and impact their near-term growth prospects.
Over the past month, VIPS has lost 9.7%, while CPNG has declined 20.3%. Let’s find out if any of these stocks is a good pick now.
Vipshop vs. Coupang: Which Asian E-commerce Stock is a Better Buy?
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