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2025 has brought plenty of surprises for investors, most of them bad. The United States is in the process of upending global trade, seeing a devalued U.S. dollar, and putting massive tariffs on goods from its largest rival, China.
U.S. stocks have reacted wildly, producing some of the biggest up and down days in market history. Volatility is on the rise with many investors worried the S&P 500 index will fall into a bear market.
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If you're worried about a bear market or worsening economic conditions in the U.S., you can look for opportunities abroad. Coupang (NYSE: CPNG) is one such option to consider adding to your portfolio.
Diversification away from the U.S.
Coupang has little exposure to the tumultuous U.S. market. The company operates an e-commerce, retail, and technology marketplace similar to Amazon, but its business is focused on South Korea. As a result, it isn't facing the risk of heavy tariffs on its products.
Running the leading e-commerce platform in South Korea is a lucrative business too. Last year, Coupang's core product commerce segment grew revenue 18% year over year in currency-neutral terms to $26.7 billion. Active customers reached 22.8 million, up 10% year over year, as Coupang penetrated most South Korean households.
This spending from South Korean consumers should be resilient in the face of any sustained trade war between the U.S. and China. Coupang may even benefit if Chinese manufacturers increase their reliance on non-U.S. markets to sell their goods. The company has been gaining market share in retail spending for years, and that's likely to continue over the next decade as e-commerce grows as a percentage of the South Korean retail landscape.
Expanding into new markets
As its South Korean marketplace becomes more mature, Coupang is seeking out new countries in which to expand its e-commerce offerings. The first international market it has launched in is Taiwan, the island nation off the coast of China. Taiwan has a population of over 20 million people with high average incomes, making it a good fit for Coupang.
Last quarter, Taiwan revenue grew 23% quarter on quarter. It's no wonder that Coupang's developing offerings segment grew 153% year over year in 2024 (excluding the company's recent acquisition of Farfetch).
The developing offerings segment includes Taiwan revenue, as well as other emerging businesses. At just $3.6 billion in annual sales, the segment remains small relative to the core e-commerce business in South Korea. However, it can develop into a nice growth engine within the next few years.