Coupang Inc. Stock Surpasses $20 on New York Stock Exchange
Coupang Wow Membership Fee Increased from 4,990 KRW to 7,890 KRW
Coupang's parent company, Coupang Inc., saw its stock price on the New York Stock Exchange rise more than 10% to surpass $20 after announcing plans to increase the Wow Membership monthly fee.
On the 12th (local time), Coupang Inc. closed at $21.25 on the NYSE, up $2.19 (11.49%) from the previous day's $19.06. This is the first time in one and a half years since October 6, 2022 ($21.03) that Coupang's stock price closed above $20.
Coupang achieved an operating profit of over 600 billion won last year, marking its first annual profit in 14 years since its founding in 2010. The photo shows Coupang headquarters in Songpa-gu, Seoul, on the 28th. Photo by Jinhyung Kang aymsdream@
Coupang was listed on the New York Stock Exchange (NYSE) on March 11, 2021, with an initial public offering price of $35. Since the stock price fell below $10 in May 2022, it had not surpassed the $20 mark. After announcing on February 28 that it had achieved an annual profit for the first time in 14 years since its founding, Coupang's stock traded between $17 and $19, but it exceeded $20 following the news of the membership monthly fee increase.
U.S. media analyzed that the stock price rose as investors expect the increase in membership fees by 58% to lead to higher paid revenue. Some media outlets reported, "Coupang has an e-commerce model similar to Amazon. Even if Amazon aggressively raises Prime membership fees, it is hard to imagine a mass exodus of members."
Earlier, Coupang raised the monthly fee for new members from 4,990 KRW to 7,890 KRW starting on the 13th. Existing members' fees are scheduled to increase to the same price starting in August. As of the end of last year, Coupang Wow Membership had 14 million members. Assuming no cancellations, membership revenue would increase from 838.8 billion KRW annually to 1.326 trillion KRW.
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