When investors think of Asian e-commerce, Coupang (CPNG -3.74%) often draws the “Amazon of South Korea” comparison. This label captures part of the story but not the whole picture.

Coupang is headquartered in Seattle and describes itself as a technology company. While it’s best known for its retail dominance and hallmark Rocket Delivery service, it has also expanded into fintech, food delivery, streaming, and advertising. Still, e-commerce remains the foundation of its business — and that’s where most of its growth and profits are generated today.

The company has given shareholders plenty of reasons to be optimistic — here are three of the biggest reasons investors are bullish on Coupang stock.

1.Coupang dominates South Korea’s retail market

South Korea is one of the most attractive e-commerce markets in the world, thanks to its internet penetration rate of over 97% and a highly concentrated population around the capital city of Seoul. Against this backdrop, Coupang has emerged as the undisputed leader in this market with approximately 24 million active customers — roughly 46% of South Korea’s entire population.

The company’s edge lies in logistics. Coupang has spent years building a dense fulfillment and delivery network, strategically placing warehouses so that 70% of South Koreans live within a seven-mile radius of a logistics center. This extensive logistics footprint allows its Rocket Delivery service to consistently meet its promise of “dawn delivery” and same-day fulfillment. Note that Coupang reported the 70% figure in its 2021 IPO filing, so the actual number today is likely to be even higher than that.

This network doesn’t just offer customers unmatched convenience and service — it’s a moat for the business. Once customers grow accustomed to reliable, rapid delivery, switching to rivals like Naver becomes far less appealing. That customer loyalty bears out in Coupang’s revenue per active customer, which increased from $1,196 in 2023 to $1,207 in 2024, reflecting a steady upward trend that suggests customers are spending more with the company over time.

2.Profitability is improving — and fast

For years, Coupang was criticized for operating losses as it invested heavily in the business. But that narrative is shifting. In Q2 2025, Coupang reported $8.5 billion in revenue, a 16% year-over-year increase, with gross profit rising even faster at 20%. Net income hit $31 million, reversing a loss from the year-ago period. It has also been profitable for the last four consecutive quarters, suggesting this trend is sustainable.

That kind of momentum matters. It shows that Coupang is beginning to flex its scale — higher volumes are driving operating leverage, while investments in automation and AI also contributed to better efficiency. Unlike growth companies that fail to exit the cash-burning phase, Coupang now has the flexibility to self-fund its international expansion and new initiatives.

The trajectory looks similar to Amazon‘s early era — years of losses followed by margin expansion. Investors who once worried about red ink now see a business with strengthening financial discipline.

3. New markets and verticals expand Coupang’s runway

While South Korea remains its foundation, Coupang isn’t standing still. After entering the Taiwanese market just a few years ago, the company has already built an impressive growth machine.

In Q2 2025, revenue growth in Taiwan was in the triple-digits, and Coupang expects that rate to improve further in the third quarter. It is using the same playbook it refined at home: aggressive investment in logistics and customer experience to win loyalty.

While international expansion is costly, it’s also necessary if Coupang wants to break the mold of a “single-market story.” Success in Taiwan could serve as proof of concept for the company’s broader expansion across Asia.

Beyond geography, Coupang is also expanding into new verticals like Coupang Eats (food delivery), fintech, and video streaming. These efforts remain small compared to its core commerce business, but they represent important optionality. If even one of these bets scales meaningfully, it could add another growth engine.

What it means for investors

Coupang is no longer just a fast-growing but unprofitable e-commerce upstart. It has matured into a diversified technology company with a dominant retail business in its home market, improving profitability, and bold ambitions in both international and adjacent markets.

For long-term investors, the central question is whether Coupang can replicate its success outside of South Korea and turn new verticals into meaningful opportunities. If it can do so, Coupang will cement itself as one of Asia’s most important internet companies.

All said, investors should keep Coupang on their radar.