Coupang Still Working Through Farfetch Acquisition

Coupang's Q2 results were good, with revenues up 25.4%, an acceleration from +22.6% in Q1. 18% of that growth was organic, not including the contributions from Farfetch which was acquired in late Q1. Product customers grew 12%, and Coupang's "Developing Offerings" (which includes Coupang Eats, Play, Fintech, and its Taiwanese efforts) expanded 180%. Gross margins were also good, up about 3% to 29.3%. We are still seeing the firm work through costs related to Farfetch - the quarter was just barely GAAP profitable, and cash profitability continues to trend below pre-acquisition levels. We will keep an eye on this, but I'm not overly concerned about it right now. The fair value gets a couple dollar bump up to $23.50.

Watch List

SPSC 18.95%
RDDT 6.79%
APPF 7.68%
CMG 39.89%
PSTG 3.43%
INTU 20.03%
VEEV 18.78%
WDAY -4.33%
NTNX 33.98%
CRWD 102.38%
SE 41.06%
SNOW 20.32%

Buy List

PINS -34.17%
SEMR -34.52%
TSM -38.25%
ZETA -34.45%
GOOG -49.01%
NYAX -32.51%
HRMY -56.69%
YOU -36.17%
ABNB -31.65%
ADBE -40.44%

Hold List

ASML -22.55%
VTEX -12.00%
MSFT -21.36%
ODD -0.50%
ASR -22.33%
FLYW -21.25%
CELH 14.58%
TOST 17.33%
CPNG -9.43%
HIMS 25.24%
PAYC -18.06%
MNDY 19.31%
GLBE -20.63%
ZS 43.01%
V -4.21%
ADSK 3.20%
NOW 16.58%
MELI -23.19%
FTNT 5.04%
TEAM -10.39%