Coupang plunges 14% to new 52-week low
Stocks

Coupang plunges 14% to new 52-week low

Bernstein's bearish rating, legal troubles compound e-commerce firm's challenges

Coupang Inc shares sank 13.7% to $16.79 on Thursday, hitting a new 52-week low and trading at 2.5 times their average volume as investors responded to a cascade of negative developments. The South Korean e-commerce giant now faces simultaneous pressure from a fresh Wall Street downgrade, mounting legal challenges, and an intensifying data breach investigation that has drawn in its leadership.

Bernstein analysts initiated coverage with an Underperform rating and a $17 price target on Thursday, citing structural headwinds in the Korean online retail market. The firm expressed preference for companies showing stronger growth through online penetration and artificial intelligence leadership, noting that Korea's e-commerce and food delivery sectors "are showing limited growth opportunities." This assessment arrived as a sharp contrast to the consensus analyst target price of $32.91, highlighting the growing divergence in Wall Street's outlook on the stock.

Legal troubles deepened significantly this week. Multiple law firms, including Rosen Law Firm and Levi & Korsinsky, have filed securities class action lawsuits against the company, alleging that Coupang failed to disclose inadequate cybersecurity protocols that allowed a former employee to access sensitive customer information for nearly six months without detection. The complaints also accuse the company of failing to report the breach in a timely manner to the Securities and Exchange Commission, resulting in materially false and misleading public statements. Investors who purchased shares between May 7, 2025, and December 16, 2025 face a February 17 deadline to seek lead plaintiff status in the actions.

The data breach scandal has escalated into a full-blown crisis for Coupang's leadership. Interim CEO Harold Rogers underwent a 12-hour police questioning session regarding allegations of evidence destruction. Police are investigating whether Coupang's internal probe—which initially claimed only 3,000 accounts were affected—understated the scope of a breach that authorities believe exposed data from approximately 33 million users. Rogers faces perjury allegations for testifying before the National Assembly that the company's internal investigation was conducted at the direction of the National Intelligence Service, a claim that agency has denied.

Compounding the damage, Coupang announced this week that an additional 165,000 user accounts were compromised in the same incident. The company said the leaked information included names, phone numbers, and shipping addresses, though payment details and login credentials remained secure. Coupang has offered affected customers 50,000 won ($34) shopping vouchers as compensation, a gesture unlikely to satisfy regulators or restore consumer confidence.

The legal and reputational fallout has sparked diplomatic tensions, with U.S. officials expressing concerns about the treatment of a U.S.-listed company. However, the breach and subsequent investigations have also raised questions about corporate governance at Coupang, which has seen its market capitalization erode to approximately $35.5 billion from its 52-week high near $27 per share reached in early 2025.

Analysts remain divided on the company's prospects. While the majority still rate Coupang as a buy or hold, Bernstein's bearish stance reflects growing skepticism about the company's ability to maintain its growth trajectory in an increasingly saturated Korean market. The firm noted that the e-commerce and food delivery sectors in Korea face "limited growth opportunities," particularly compared to earlier phases of expansion that drove Coupang's rapid rise.

For investors, the near-term path forward remains fraught with uncertainty. The February 17 deadline for class action participation could trigger further selling pressure as institutional investors reassess their exposure. Meanwhile, ongoing police investigations into both the current and former CEOs suggest the data breach story is far from over, with potential for additional regulatory penalties and reputational damage.

Coupang's 13.7% decline on Thursday extends a broader downtrend that has seen the stock lose roughly half its value from recent highs. With shares now trading near their $16.79 52-week low and carrying a trailing price-to-earnings ratio of 92.6, the company faces a steep challenge in rebuilding investor confidence while navigating multiple legal and regulatory headwinds.