Down 20%, Is Coupang Stock a Buy Now?
Coupang (CPNG) stock has fallen by 20.3% in less than a month, from $28.16 on 28th Nov, 2025 to $22.43 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, CPNG stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 46% , with median peak return reaching 55%. We define sharp dip as stock going down 30% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
| Period | Past Median Return |
|---|---|
| 1M | 4.0% |
| 3M | 29.6% |
| 6M | 28.3% |
| 12M | 45.9% |
Historical Dip-Wise Details
STT had 2 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 55% median peak return within 1 year of dip event
- 311 days is the median time to peak return after a dip event
- -12% median max drawdown within 1 year of dip event
| 30 Day Dip | STT Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | STT | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 46% | 55% | -12% | 311 | ||||
| 3092020 | -33% | -17% | 61% | 62% | -18% | 365 | ||
| 8182011 | -30% | -15% | 31% | 48% | -6% | 257 | ||
Coupang Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 9.2% | Pass |
| Revenue Growth (3-Yr Avg) | 4.5% | Fail |
| Operating Cash Flow Margin (LTM) | -40.7% | Fail |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 0.4 | |
| => Cash To Interest Expense Ratio | 15.8 |
Not sure if you can take a call on CPNG stock? Consider portfolio approach
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