Shares of South Korean e-commerce company Coupang (NYSE:CPNG) traded more than 10% lower at one point this afternoon after the company reported its earnings results from the first quarter of 2021.
Coupang, which recently went public in March, gives customers the ability to get millions of items delivered on the same day they order them online. The company reported a loss of nearly $295 million in the first quarter of this year, down from a loss of nearly $105 million in the first quarter of 2019.
Total revenue in the quarter of roughly $4.2 billion grew 74% year over year, while active customers climbed 21% year over year to top 16 million.
Despite the losses, Coupang CEO Bom Kim said on the company's earnings call that the company planned to further invest to strengthen its infrastructure in order to enhance its fast delivery model and wide selection of items. That investment will include $708 million to hire thousands of workers to build logistics facilities in South Korea.
Coupang's stock price has now fallen to less than $32 per share, the lowest it's been since its initial public offering. While the company and its potential to grow certainly look promising, I would probably want to see the company take steps toward profitability before buying shares.